User:Dnice

A     B       C      D       E Capital goods	  0	1	2	3	4 Consumption good 50	46	38	26	0

1.Draw using appropriate labels,a diagram showing the PPF

2.What is the marginal opportunity cost of the third unit of capital goods?What is the cost of production of the fourth unit of capital goods?

3.On the same Diagram ,draw the PPF as if there ia a 25% increase in supply of capital goods in the economy?