Lalaland is a country in which labor is the only resource. Labor can be used to collect roses or to build sheds. Lalaland has only six equally productive workers and each worker can gather either 25 roses or build one shed in one day.
(a) Draw the production possibilities frontier for Lalaland.
(b) What is the opportunity cost of building two more sheds in one day?
(c) If half the workers build sheds and half of the workers collect roses, what would be the production on Lalaland?
(d) Assume that in one day, two sheds were built and 75 roses were collected. What does this situation depict?
(e) What is the maximum potential increase in roses collection and maximum potential increase in sheds production described in the previous question?
(f) What would have to occur for three sheds to be produced along with 100 roses?