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Q. Truffle hunter's Taffy Treasures, a small candy store, makes two types of candy: Taffy also Truffles. Truffle hunter's production illustrates the law of increasing opportunity costs.
a. Use a production possibilities frontier to illustrate the production options. Be sure to label your drawing.
b. Identify a point that is efficient. Label the point "A".
c. Identify a point that is inefficient. Label the point "B".
d. Identify a point that is unattainable. Label the point "C".
e. Using your diagram, illustrate the opportunity cost of producing more Taffy. Label your new production level "D". Enlighten your findings.
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