Vulcan can produce 15 tons of macadamia nuts if it produces no bananas or 30 tons of bananas if it produces no macadamia nuts.
Part 1: Use the line drawing tool to draw the linear production possibilities frontier that illustrates this trade-off between production of macadamia nuts and production of bananas. Label the curve "PPF0."
Part 2: Now suppose there is a change in resources that increases the opportunity cost of producing one ton of macadamia nuts by two tons of bananas. All other things being equal, draw another production possibilities frontier to reflect the change in the opportunity cost. Label this new curve "PPF1."