Macroeconomics 1st Edition by Dean Karlan,Jonathan Morduch

Exercise 13

Your friend Sam has been asked to prepare appetizers for a university reception during homecoming weekend. She has an unlimited amount of ingredients but only 6 hours to prepare them. Sam can make 300 mini-sandwiches or 150 servings of melon slices topped with smoked salmon and a dab of sauce per hour.
a. Draw Sam's production possibilities frontier.
b. Now suppose that the university decides to postpone the reception until after the big game, and Sam has an extra 4 hours to prepare. Redraw her production possibilities frontier to show the impact of this increase in resources.
c. Now, in addition to the extra time to prepare, suppose Sam's friend Chris helps by preparing the melon slices. Sam can now make 300 mini-sandwiches or 300 melon appetizers per hour. Redraw Sam's production possibilities frontier to show the impact of increased productivity in making melon appetizers.