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ECON 2120 Microeconomics Problem Section (40 points) (Do all graphing on graph paper) Exam 1: Production Possibilities, Supply & Demand and Elasticity Problem 1 (10 points) Production Possibilities Chiles 0 2 Beef 33 25 15 a) Graph a PPF with chiles on the horizontal axis on a separate piece of graph paper. bj Find the slope of the PPF between (1, 36) and (2, 30). Find the slope of the PPF between (3, 20) and (4, 0). c) Find & Graph Marginal Cost (MC). Show your units. Keep this graph separate from the PPF, but again put chiles on the horizontal axis. Chiles 2 MC dj How do you find the allocation efficiency, the right mix of chiles and beef to produce? Suppose that the marginal benefit received from Chile consumption is 12 for the 1" unit of chiles, 9 for the 2" unit of chiles, 5 for the 3" unit of chiles, 0 for the 4" unit of chiles. If you need to produce chiles in whole units, what's the best amount to produce? Explain and support your answer by referring to numbers or a graph. if you can produce partial units of chiles, what's the best amount to produce ? Explain and support your answer by referring to numbers and a graph