Exercise 3

Suppose that Leisureland produces 2 goods: food and oil. 

Its production possibilities are:

Food
kg per month
and Oil
l per month
300 0
200 50
100 100
0 150

Busyland also produces only food and oil.

Its production possibilities are:

Food
kg per month
and Oil
l per month
150 0
100 100
50 200
0 300

Leisureland's PPF

Busyland's PPF