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Please help explain how to determine COMBINED PFF (EQUAL QUANTITIES)? Is it simply adding the two productions per day for each item (cupcakes and muffins)?

Please help explain how to determine COMBINED PFF (EQUAL QUANTITIES)? Is it simply adding the two productions per day for each item (cupcakes and muffins)?

Please help explain how to determine COMBINES PFF (SPECIALIZATION)

Thanks

The following table shows production possibilities for Li and Raj.

Li's Production Per Day

Raj's Production Per Day

Cupcakes

Muffins

Cupcakes

Muffins

0

12

0

16

1

9

1

12

2

6

2

8

3

3

3

4

4

0

4

0

  1. Fill in the table below as follows(10 marks):
  • The first 2 columns represent joint production where Li and Raj produce equal quantities.
  • The last 2 columns represent joint production where they each produce according to their comparative advantage (specialization).

Combined PPF (Equal Quantities)

Combined PPF (Specialization)

Cupcakes

Muffins

Cupcakes

Muffins

0

0

2

2

4

4

6

6

8

8

  1. Plot the combined production possibility curves for both cases (equal quantities & specialization), with cupcakes on the horizontal axis, on the same graph).(10 marks)

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