1. Explain how to derive a production possibilities frontier (PPF).
2. What does a PPF that is bowed outward imply about the opportunity cost of production?
3. Based on the data below, identify which good each person has a comparative advantage in producing.
a. Person A can produce the following three combinations of goods: (1) 10X and 0Y, (2) 5X and 5Y, (3) 0X and 10Y.
b. Person B can produce the following three combinations of goods: (1) 10X and 0Y, (2) 5X and 15Y, (3) 0X and 30Y