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Question Two: Production Possibilities Analysis Below is a Production Possibilities Table for the Cheatum Tax Preparation Company. The company can prepare Business and/or Personal tax

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Question Two: Production Possibilities Analysis Below is a Production Possibilities Table for the Cheatum Tax Preparation Company. The company can prepare Business and/or Personal tax returns however the more time devoted to business returns means the less time available for Personal returns. Business Returns Personal Returns 0 100 30 80 55 60 70 40 80 20 85 O 1. Currently the firm is operating at 30 business returns and 80 Personal returns. Management wants to shift to more business returns because they charge more for those clients. What is the opportunity cost if the firm decides to increase business return production to 45 returns? 2. Some employees in the company believe they could actually increase the number of business returns without sacrificing any personal returns. Explain to those people why that is not possible in the short run

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