1. Rehman Bahpoo's company only produces two goods, hockey sticks and hockey pucks. All three economic...

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1. Rehman Bahpoo's company only produces two goods, hockey sticks and hockey pucks. All three economic inputs are required to produce these goods. There are 30 workers, 5 machines, 1 million pounds of lumber and 1 million pounds of rubber. The table below indicates the amount of sticks and pucks that can be produced daily with the above inputs. The economic inputs are to last for the whole year! A B C D E STICKS 450 PUCKS 0 400 125 300 200 0 250 275 300 a) Draw the PPC for Bapoo's Hockey Supplies. /2 b)What is the opportunity cost of increasing the output of sticks from 300 units to 400 units a day? (write in full sentences) /1 c) What is the opportunity cost of increasing the output of pucks from Option C to Option D? (write in full sentences) /1 d) Suppose that the Toronto Maple Leaf contacts Rehman and says: "your products are fantastic, they make our lousy players somewhat competitive.... We want 200 sticks and 400 today"! What must Rehman's response be? Explain why in detail. Illustrate it on your graph above. /3 1. Rehman Bahpoo's company only produces two goods, hockey sticks and hockey pucks. All three economic inputs are required to produce these goods. There are 30 workers, 5 machines, 1 million pounds of lumber and 1 million pounds of rubber. The table below indicates the amount of sticks and pucks that can be produced daily with the above inputs. The economic inputs are to last for the whole year! A B C D E STICKS 450 PUCKS 0 400 125 300 200 0 250 275 300 a) Draw the PPC for Bapoo's Hockey Supplies. /2 b)What is the opportunity cost of increasing the output of sticks from 300 units to 400 units a day? (write in full sentences) /1 c) What is the opportunity cost of increasing the output of pucks from Option C to Option D? (write in full sentences) /1 d) Suppose that the Toronto Maple Leaf contacts Rehman and says: "your products are fantastic, they make our lousy players somewhat competitive.... We want 200 sticks and 400 today"! What must Rehman's response be? Explain why in detail. Illustrate it on your graph above. /3