Econ 551 Assignment 3 Due: Thursday November 2, 2017, 5:00pm 1. Alex has 1 day to work, and he can produce two goods, bread b, and wine w. If he devotes a fraction of his day L b s 1 to bread making, he can make ,lLbunits of bread. If he devotes a fraction of the day L w $1 to wine making, he can produce |n(1 + Lw) units of wine. He does nothing else with his time,so Lb+Lw=1. (i) If Alex makes b $1 units of bread, how long does this take him? (Your answer will be a function of b.) (ii) By calculating how much wine Alex can make with the time he has left over (having made b units of bread), show that his PPF is characterized by the equation w = ln(2-b2) for b 51. (iii) What is the marginal rate of transformation between bread and wine when (a) Alex produces no bread, when (b) he produces no wine, and when (c) he produces at an arbitrary point (b; w) on his production possibility fronteir