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The following table shows production possibilities for Li and Raj. Li's Production Per Day Raj's Production Per Day Muffins Muffins 12 9 Cupcakes 0
The following table shows production possibilities for Li and Raj. Li's Production Per Day Raj's Production Per Day Muffins Muffins 12 9 Cupcakes 0 Cupcakes 0 2 1 2 4 3 a. Fill in the table below as follows (10 marks): 6 4 8 6 3 0 Combined PPF (Equal Quantities) Combined PPF (Specialization) Muffins Muffins 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). Cupcakes 0 2 Cupcakes 0 4 6 1 2 3 8 4 16 12 8 4 0 b. 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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