Choiceland has 250 workers and produces only two goods, X and Y. Labour is the only factor of production, but some workers are better suited to producing X than Y (and vice versa). The table below shows the maximum levels of output of each good possible from various levels of labour input.

a. Draw the production possibilities boundary for Choice land on a scale diagram, with the production of X on the horizontal axis and the production of Y on the vertical axis.
b. Compute the opportunity cost of producing an extra 15 units of X if the economy is initially producing 45 units of X and 900 units of Y. How does this compare to the opportunity cost if the economy were initially producing 60 units of X and 600 units of Y?
c. If the economy is producing 40 units of X and 600 units of Y, what is the opportunity cost of producing an extra 20 units of X?
d. Suppose now that the technology associated with producing good Y improves, so that the maximum level of Y that can be produced from any given level of labour input increases by 10 percent. Explain (or show in a diagram) what happens to the production possibilities curve.

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Number of Annual Number of Annual Workers Production Workers Production Producing X of X 0 50 100 150 200 250 20 45 60 70 75 Producing Y 250 200 150 100 50 of Y 1300 1200 900 600 350