imagine that the economy of Kiwiland produces only sheep products (wool and meat) and kitchen appliances. If all resources are used to produce sheep, then 30 million sheep can be produced. if all resources are used to produce kitchen appliances, then 10 million appliances can be produced. a. With quantity of sheep produced per year on the vertical axis and quantity of appliances on the horizontal axis, draw the production possibilities frontier (PPF) for Kiwiland. For sim plicity, assume that the PPF is linear (i.e., is a straight line segment). b. For the PPF you have drawn in (a), what is the opportunity cost of producing one additional sheep? What is the opportunity cost of producing one additional kitchen appliance ? c. in reality, the PPF is likely to be curved rather than straight. Red raw the PPF for Kiwiland based on the assumption that its shape is bowed outwards. What key condition justifies the bowed outward PPF? Bearing in mind the definition of the PPF, try to explain why this is likely in the context of sheep and kitchen appliances. d. Suppose the recent drought conditions become more common. How does this affect the PPF? Prior to 2003, the Dunedin City Council charged a fixed annual fee for rubbish collection that was included in each home-owner's rates bill (think about what this implies for the 'price'of disposing of an additional bag of rubbish ). Households were allowed to put out as many rubbish bags as they wish .Suppose the average household disposed of three bags of rubbish per week under this plan . *unlimited rubbish $0 MC of rubbish The council since has switched to a charge-per-bag system; a home owner purchases an official Dunedin City Council rubbish bag at the supermarket for $2.20 each. What effect on the total quantity and cost of rubbish collection do you expect the introduction of the charge-per-bag system had? Are householders better off financially? Fixed fee $2.20 MC of rubbish