Samuel is indifferent among the combinations of private and public shown in the following table. Combination A B C D E F LL Private Goods 16 11 7 4 3 2 The production possibilities schedule and the indifference curve are shown below: Public Goods 1 2 3 4 5 16 Assuming that the economy can produce one unit of public goods and ten units of private goods, but that it can produce one more unit of public goods by reducing its production of private goods by two units, draw the production possibilities schedule. a. What is the maximum production of private goods? (2 marks) b. What is the maximum production of public goods? (2 marks) c. Would it be possible to produce five units of public goods and one unit of private goods? (4 marks) d. Which of the feasible combinations maximizes utility? Why? (4 marks) Private goods 12 10 co S N O 1 T I In (1,16) (1,10) 2 Production possibilities schedule (slope = -2) Indifference curve 13 (3,7) (4,4) 4 (5,3) 5 (6,2) Public goods