1. Hi, I am having a hard time figuring out this question particulary because the way it is worded. It
points out that we produce ovens and bread at point c, but the problem with the question is that it
never said the ovens are used to produced the bread. It could be two different items that have no
common attributes.
The answer could be a different line other than the orange and black line.
Thank You!
Solution
It is mentioned in the question that previously produced ovens are available. This means there
are ovens available for baking breads.
The table given is like any other two goods being produced in nation. You might very well
consider both as good A and good B.
The PPF curve will towards right (Shift the curve with point C to right). The production of both
oven and bread will increase in the future since the oven available for production of bread will
increase means the production of bread will also increase with oven.