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The country of Alta has 300 workers. Over the course of the workday each worker can either produce 5 yards of cloth or 10 pounds of wheat (individual workers can also divide their workdays and produce both goods over the course of a day). Explain.
(a) What is the opportunity cost of one yard of cloth?
(b) Draw the country's production possibilities frontier with wheat on the vertical axis. Label the intersection points and the slope.
(c) Can it produce 465 yards of cloth 2,239 pounds of wheat?
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