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Write your answers below. Some of the questions are worth up to three points. 36. A strike by elves at Santa's workshop has reduced production
Write your answers below. Some of the questions are worth up to three points. 36. A strike by elves at Santa's workshop has reduced production possibilities at the workshop to two options: the workshop can produce only Ninjago LEGO mini-figures and hand-made wooden toy trains. Using the production schedule below, draw a graph of the workshop's production possibilities curve (PPC) with the LEGO figures on the Y-axis and trains on the X-axis. Label points A. B. C. D. and E on the curve. Wooden Toy Trains (x) Ninjago LEGO mini-figures (y) 0 100 B 10 85 C 20 65 D 30 35 E 40 37. What is the opportunity cost of moving from Point A to Point D on the graph? 38. What is the marginal benefit of moving from Point C to Point D? 39. Graph and label a new Point F at 40 Trains and 90 LEGOs. Identify two ways that Santa could shift his production possibilities curve outward to meet Point F (in other words, how his workshop could produce more trains and LEGO figures -- we discussed three in class). Be specific. 40. Graph and label a new Point G at 20 Trains and 30 LEGOs. How would economists characterize production at Point G? (you can be brief here)
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