Suppose there are 6,000 hours of labor available in Denmark and that 10 hours of labor are required to produce one unit of soda, while 5 hours are required to produce one unit of biscuits. Graph the PPF for this country. Place soda on the vertical axis and biscuits on the horizontal. Use this to answer questions.
A) What is the maximum amount of soda and biscuits Denmark can produce? ($1,000)
B) Draw a graph of the PPF using the information above. On your graph, place soda on the vertical axis and biscuits on the horizontal axis. Be sure to label the axes, the numerical & the PPF. Assume the PPF slope is linear. ($1,000)
C) What is the value of the slope? Show workings to get full credit. ($1,000)
D) What does this slope value represent? ($1,000)