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Question: 1 in the kingdom of bristol they can produce orange...

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1. In the Kingdom of Bristol they can produce Orange Road Cones and Christmas Bells based on the following schedule Cones Bells 170 200 225 245 Cones Bells 550 540 520 490 450 400 340 270 Cones Bells 260 270 275 190 50 95 135 100 a) Find the opportunity cost of producing an additional Cone if the economy is currently producing 135 cones, 225 cones and 260 cones. Explain why the trend in these costs makes sense. (1 point) b) Assume that the PPF is graphed so that Bells are on the horizontal axis. Find the slope of the PPF between 270 and 340 bells (you dont need to draw the PPF to do this but its ok if you do) and explain why this number is related to one of your answers in (a). (1 point) 2. There is an economy consisting of only two people, Fred and Robin, who produce and consume two goods: gallons of juice and gallons of beer. In 1 week, Robin can produce 25 gallons of juice or 5 gallons of beer. Fred can produce 12 gallons of juice or 4 gallons of beer. Assume both goods can be produced in continuous quantities a) Determine who has the comparative advantage in each good. Show the numbers that led to this conclusion. Use this information to help draw the PPF for the economy with gallons of juice on the vertical axis. Be sure to specifically label both intercepts, give the MRT at every point and give the specific coordinates of any point where the MRT changes. (1 point) b) Explain why Robin having 9 gallons of juice and 4 gallons of beer and Fred having 11 gallons of juice and 1 gallons of beer is not possible without trade. Give the production of each person and the trade that makes this outcome possible. (1 point) 3. The wood used to make pickets for wooden fences usually comes from soft wood trees like pine. Wooden fence posts come from harder woods since they must be more durable. An infestation of bark beetles has killed hundreds of

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