Extending what you know about production-possibility curves, try to draw the ppc for a nation consisting of four individuals who work separately. The four individuals have these different abilities:

Person A can make 1 unit of cloth or 2 units of wheat or any combination in between (e.g., can make 0.5 cloth and 1 wheat by spending half time on each).

Person B can make 2 cloth or 1 wheat or any combination in between.

Person C can make 1 cloth or 1 wheat or any combination in between.

Person D can make 2 cloth or 3 wheat or any combination in between.

What is the best they can all produce? That is, draw the ppc for the four of them. Try it in these stages:

a. What is the most wheat they could grow if they spent all of their time growing wheat only? Plot that point on a cloth–wheat graph.

b. What is the most cloth they could make? Plot that point.

c. Now here’s the tricky part. Find the best combinations they could produce when producing some of both, where best means they could make that combination but could not make more of one good without giving up some of the other.