Suppose that Econistan produces two goods, marshmallows and toothpicks, under conditions of constant

opportunity costs. Given its resources, the maximum number of marshmallows that it can make is 1000

pounds, and the opportunity cost of making one additional box of toothpicks is 4 pounds of marshmallows.

a) (5 points) What is the maximum amount of toothpicks that Econistan can produce?

b) (10 points) Draw a graph of the PPF using the information above. On your graph, place toothpicks

on the vertical axis and marshmallows on the horizontal axis. Be sure to label the axes, the numerical

intercepts and the PPF.

c) (5 points) What is the value of the slope? What does this value represent?