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Gregg and Mia both make meatloaf and bake bread. It takes Gregg three hours to bake six loaves of bread and two hours to make
Gregg and Mia both make meatloaf and bake bread. It takes Gregg three hours to bake six loaves of bread and two hours to make three meatloaves. It takes Mia three hours to bake eight loaves of bread and two hours to make three meatloaves. Currently Gregg and Mia do not trade with one another. For this problem assume that Gregg and Mia have linear production possibility frontiers and that they do not trade with anyone else. a. Suppose Gregg and Mia each have 60 hours this week that they can devote to bread baking and meatloaf cooking. Construct graphs depicting the production possibility frontiers for Gregg and Mia. In your graphs make sure you label the x-axis and y-axis clearly. In your graphs, measure bread on the vertical axis and meatloaf on the horizontal axis. b. What is Gregg's opportunity cost of producing one loaf of bread? c. What is Gregg's opportunity cost of producing one meatloaf? d. What is Mia's opportunity cost of producing one loaf of bread? e. What is Mia's opportunity cost of producing one meatloaf
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