Production Possibilities Frontier

Production Possibilities Frontier: 13. Draw a production possibilities frontier (PPF) with missiles on the horizontal axis and butter on the vertical axis, illustrating these options, showing points A - F. Option Missiles Butter A 0 90 B 1 84 C 2 72 D 3 54 E 4 30 F 5 O a. Can this country produce 72 units of butter and 4 missiles? Yes or no? Where would this point lie relative to the PPF? b. What is the trade-off when moving from point A to B? c. What is the opportunity cost of increasing missile production from 3 to 4 units? d. What is the opportunity cost of increasing butter production from 30 to 54 units? e. What is the maximum amount of butter that can be produced, if all resources are devoted to butter production? f. Can this country produce 3 missiles and 40 units of butter? Yes or no? Where would this point lie relative to the PPF