Ozzie and Skip are both Yak ranchers.They own a business together called "Ozzie and Skip's Yaks".They are each currently raising 100 Yaks (200 Yaks between the two of them). Ozzie could raise 3 water buffalos for each Yak he is raising; Skip could raise 1 water buffalo for each Yak he is raising.They are not currently raising any water buffalos. Ozzie raising 100 yaks and Skip raising 100 yaks are each at their maximum capacity for raising yaks or water buffalos during the current period; if they were to raise any water buffalos they would have to give up raising yaks. ALL the questions below refer back to this basic information.

1. In terms of Yaks, what is the opportunity cost for Skip to raise a single water buffalo? (1 point)
2. In terms of Yaks, what is the opportunity cost for Ozzie to raise a single water buffalo? (1 point)
3. If they were to raise 30 water buffalos together, who should raise them? (1 point)
4. Assuming they are acting efficiently and they are raising 30 water buffalo between the two of them, how many Yaks is Ozzie raising? How many Yaks is Skip raising? (2 points)
5. Draw the production possibilities curve for"Ozzie and Skips Yaks (and Water Buffalos)" (you may find it easiest to draw one for Ozzie and one for Skip and then put them together) (5 points)
6. If they get paid twice as much to raise a Yak compared to a water buffalo, how many Yaks and water buffalo should they raise? (2 points)