Consider an economy consisting of one territory and two provinces with their technology and input specified in attached photo. In what follows, assume that the economy switches producers in the right order except in items 5, 6 and 11.

a- How much is Yukon's opportunity cost of a lobster?

b- Between Qubec and Nova Scotia, which one is better at producing potatoes and why?

c- Assume that potato production requires labor input only. Determine Nova Scotia's returns to scale of potato production.

d- With lobster on the horizontal axis, sketch this economy's PPF.

e- Sketch the set of outputs that can be produced if they switch the production in the reverse order than item 4.

f- Is the set in item 5 a PPF?

g- With the number of workers on the horizontal axis, sketch this economy's lobster production function.

h- With the number of workers on the horizontal axis, sketch this economy's marginal product for lobster.

Yukon Quebec Nova Scotia lobster 1 lobster / 10 workers 1 lobster / 5 workers 1 lobster / 1 worker potato 1 potato / 1 worker 1 potato / 5 workers 1 potato / 5 workers input 10 workers 20 workers 10 workers Table 1