(Solved): Brazil produces ethanol from sugar, and the land used to grow sugar can be used to grow food crops ...

Brazil produces ethanol from sugar, and the land used to grow sugar can be used to grow food crops. The table sets out Brazil's production possibilities for ethanol and food crops: 1- a)- Draw a graphic of Brazil's PPF and explain how your graph illustrates scarcity. b)- If Brazil produces 40 barrels of ethanol a day, how much food must it produce to achieve production efficiency? c)- Why does Brazil face tradeoff on its PPF? 2- a)- If Brazil increases ethanol production from 40 barrels to 54 barrels a day, what is the opportunity cost of additional ethanol? b)- If Brazil increases food production from 2 tons per day to 3 tons per day, what is the opportunity cost of the additional food? 3- Does Brazil face an increasing opportunity cost of producing ethanol? What feature of Brazil's PPF illustrates an increasing opportunity cost? Application 2: A random country has 50 hours of labour a day that can be used to produce two goods: A and B. The table below shows the maximum quantity of each good that it can produce with different quantities of labour. 1- Can this country produce 4 units of good \( \mathrm{A} \) and 14 units of good \( \mathrm{B} \) ? 2- If this country produces 4 units of good \( A \) and 9 of good B, is production efficient? 3- If this country produces 8 units of good \( \mathrm{A} \) and 5 of good B, is production efficient? 4- Suppose that this country produces 4 units of good \( \mathrm{A} \) and 12 units of good \( \mathrm{b} \), calculate the opportunity cost of producing 2 extra units of good \( \mathrm{A} \).