Exercise on the Production Possibility Frontier: CD-Players and Shoes Suppose we see the following table of possible combinations of shoes and CD-players that society could produce (this year): Alternative Shoes (pairs) | CD-players (sets) 40 0 30 30 MOOD 20 50 10 60 0 65 a) Using the axes below, draw the production possibilities frontier (PPF) for these numbers. Be as exact and neat as possible. (Assume that the dots define a complete curve.) Leave room for drawing a new PPF (in the same graph) when you get to (e) below. b) If society is currently producing alternative C, then the basis for the opportunity cost of moving to alternative B (and getting 10 more pairs of shoes) equals the value of CD-players. c) With these production possibilities, producing 18 pairs of shoes and 30 CD sets would be d) An example of the principle of increasing marginal opportunity costs that can be seen in this table is that going from C to B costs more CD sets than going from point to point e) Suppose that the technology used in producing shoes improves, while that for producing CD-players does not. Draw one possible new production possibilities frontier in the graph above which represents the results of this change. Indicate the direction of the change that occurs with a big arrow. f) After the change in (e), when 30 CD sets are being produced, we will be able to produce more than pairs of shoes. g) (Use one word for each) An impossible production mix would be the PPF, while a productively or technically efficient production mix would be the PPF