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1. Suppose you are a farmer with 20 hectares of land on which you could grow either wheat or barley. You can allocate however much land you want to each crop.
a. Draw a Production Possibilities Frontier depicting this situation.
b. Explain what a Production Possibilities Frontier is and what the diagram represents, including what points on, below and above the PPF represent.
c. Explain why the PPF that you have drawn has the shape that it does.
d. Is it possible to use just the PPF to find the best allocation for the crops? Explain.
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