Consider an economy that only produces two goods - Bacon (B) and Apple Sauce (A). The Production Possibilities Frontier is described by B2 + A2 = 400. a) Draw the PPF for this economy, labelling points as relevant. b) If the price ratio of bacon to apple sauce is PB/PA = 2/1 how much of each good is produced? Explain. c) Suppose consumers have utility given by u(A, B) = A + 3B. Is the price ratio and quantities of both goods found in part (b) a Walrasian Equilibrium? d) What price ratio would lead to a Walrasian Equilibrium in this case? 3. a) Discuss some examples of an industry/product where you think there is good reason to have a legal barrier to entry, creating a non-natural monopoly. b) Discuss some examples of an industry/product which currently has barriers to entry which you think are unreasonable. c) For those industries/products discussed in part (a), what are some of the downsides of implementing the barriers to entry, and what kind of regulation might be useful to limit these downsides