The people in Plantation Island can work a maximum of 100 hours in total every day. The first 10 hours of work can produce $20 of real GDP. The second 10 hours a day can produce an additional $18 hours of real GDP. The third 10 hours a day can produce an additional $15 of real GDP. Each additional 10 hours of work a day produces additional GDP of $2 a day less than the previous 10 hours.

The firms in Plantation Island are willing to hire 10 hours of labor a day for a real wage rate of $2 an hour, 20 hours a day for $1.80 an hour, and an additional 10 hours a day for each 20 cents cut in the real wage rate. The people in Plantation Island are willing to work 10 hours a day for a real wage rate of 20 cents an hour. And for each 20 cents an hour increase in the real wage, they are willing to work an additional 10 hours a day.

a) Make a table and a graph of Plantation Island's production function.

b) On your graph of production function, show a point that represents each of the following:

i) the maximum amount of real GDP Plantation Island can produce.

ii) unattainable level of real GDP for the Island.

iii) attainable level of real GDP if Plantation Island does not use resources efficiently.

iv) attainable level of real GDP if Plantation Island uses resources efficiently.

c) Can Plantation Island ever produce above the attainable area described by its production function? How?

d) Make a table that shows Plantation Island's demand and supply of labor schedule and draw demand and supply of labor curve. Label your graph. Show the equilibrium real wage rate and quantity of labor in Plantation Island on your graph.

e) Find the economy's potential GDP. If you cannot determine a precise amount, give the range in which potential GDP must lie.