Chapter 4

An economy can produce good 1 using labor and capital and good 2 using labor and land. The total supply of labor is 100 units. Given the supply of capital, the outputs of the two goods depend on labor input as follows: $$\begin{array}{cccc}\text{ Labor Input }& \text{ Output }& \text{ Labor Input }& \text{ Output }\\ \text{ to Good 1 }& \text{ of Good 1 }& \text{ to Good 2 }& \text{ ofGood 2 }\\ 0& 0.0& 0& 0.0\\ 10& 25.1& 10& 39.8\\ 20& 38.1& 20& 52.5\\ 30& 48.6& 30& 61.8\\ 40& 57.7& 40& 69.3\\ 50& 66.0& 50& 75.8\\ 60& 73.6& 60& 81.5\\ 70& 80.7& 70& 86.7\\ 80& 87.4& 80& 91.4\\ 90& 93.9& 90& 95.9\\ 100& 100& 100& 100\end{array}$$ a. Graph the production functions for good 1 and good 2 b. Graph the production possibility frontier. Why is it curved?