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1. Jane's Island's production possibilities are given in the table to the right.
a. Draw a graph of the production possibility possibilities frontier on Jane's Island.
b. What are Jane's opportunity costs of producing corn and cloth at each output in the table?
2. In problem 1, Jane is willing to give up 0.75 pounds of corn per yard of cloth if she has 2 yards of cloth; 0.50 pounds of corn per yard of cloth if she has 4 yards of cloth; and 0.25 pound of corn per yard of cloth if she has 6 yards of cloth.
a. Draw a graph of Jane's marginal benefit from corn.
Corn (pounds per month)
Cloth (yards per month)
3.0
and
0
2.0
2
1.0
4
6
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