Question: 3. (10 marks) Below is the production possibilities table for the country of Lavaland. % resources Number of % resources Number of Row devoted to

 3. (10 marks) Below is the production possibilities table for the

3. (10 marks) Below is the production possibilities table for the country of Lavaland. % resources Number of % resources Number of Row devoted to tanks devoted to pizzas production production of tanks of pizza 0 0 100 15 A 20 4 80 14 B 40 7 60 12 C 60 9 40 9 D 80 11 20 E 100 12 0 0 (a) Use the information in the Table to draw the production possibilities curve (PP1) for Lavaland. Put tanks on the horizontal axis. (b) What is the cost to Lavaland of moving from point A to point B on its PP1? c) What is the cost to Lavaland of moving from point E to point F? (d) What general economic principle is being illustrated by your answers to part (b) and (c) above? Explain

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