The nation of Starbooks produces two goods: books and coffee. Assume there are no diminishing returns to their PPFI PPF2 PPF3 EX shifting resources to producing one or the other. 20 In year 1, if the people of Starbooks were to devote all 18 available resources to producing coffee, they could produce 16 8,000 cups. If they instead devote all resources to producing 14 books, they could produce 12,000 books. Use the line labeled PPF1 to draw a production possibilities frontier 12 for Starbooks. In year 2, a Starbookian scientist develops a new espresso Books (thousands 10 machine which enables the coffee industry to increase its output by 50%. Use the line labeled PPF2 to draw Starbooks' new production possibilities frontier. In year 3, the Starbooks Academy of Literature and Java graduated its first class of students. These new, highly 6 10 12 14 16 18 20 skilled workers enable both industries to produce up to Coffee (thousands of cups) 2,000 more units per year. Use the line labeled PPF3 to draw Starbooks' production possibilities frontier for year 3. Now, move the dot labeled X to a point indicating a level of production which was impossible in year 1, efficient in year 2, and inefficient in year 3