Suppose that in Problem 3 a sewing machine is introduced that enables Helen to sew 8 dresses per hour rather than only 4. (L03)
a. Show how this development shifts her production possibilities curve.
b. Indicate if the following points are attainable and/or efficient before and after the introduction of the sewing machine. 16 dresses per day, 48 loaves per day. 24 dresses per day, 16 loaves per day.
c. Explain what is meant by the following statement: "An increase in productivity with respect to any one good increases our options for producing and consuming all other goods."