1. A small African country Nambuty produces two goods: Vanilla and computers. Maximum combinations of two goods that can

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1 A Small African Country Nambuty Produces Two Goods Vanilla And Computers Maximum Combinations Of Two Goods That Can 1 (57 KiB) Viewed 28 times

1. A small African country Nambuty produces two goods: Vanilla and computers. Maximum combinations of two goods that can be produced is given in the table below A Combination Computers Vanilla 0 350 B 100 300 с 175 250 D 250 150 E 300 0 (i) Draw the production possibility frontier (PPF) for Nambutu. (5 marks) (ii) Explain what a point on the line shows (for example point A or B, etc ). Full answer required. (2 marks) ( (iii) Assume the economy starts at point D and moves to point C. Explain what is happening here. Calculate the opportunity cost. (3 marks)