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Jaka has a new hobby during the pandemic - growing chilis and tomatoes that his family can eat. He found that each month he can
Jaka has a new hobby during the pandemic - growing chilis and tomatoes that his family can eat. He found that each month he can spend 12 hours growing chilis and tomatoes and that his production possibilities frontier (PPF) is 12 = C + 37 (where C is chili and T is tomato, in kilograms). Draw Jaka's PPF (with chili production on the vertical axis and tomato on the horizontal axis) and calculate his marginal rate of transformation (MRT) (5 points) Jaka is wondering how much chilis and tomatoes he should produce for his family. He consulted his daughter, who is a student at FEB UI. After observing the family preferences, his daughter found that the family's utility function from consuming chili and tomato is as follows: U = 10060-570.6. Given this information, how many chili and tomato should Jaka produce each month, given his PPF? (10 points)
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