Kayla has 10 hours to pick berries, to catch trout, and to invest in a net. In the absence of investment, it takes Kayla 2 hours to pick 1 basket of berries and 2 hours to catch 1 trout. Kayla has the option to invest by devoting 2 hours into weaving a net. If she weaves a net for 2 hours, then it takes her 2 hours to pick 1 basket of berries and 1 hour to catch 1 trout. Suppose that the government imposes a quantity restriction of 4 baskets of berries. That is, Kayla is allowed to pick anything between 0 and 4 basket of berries, but not more than that. There is no quantity restriction on trout and Kayla has the option to invest in a net. Outside merchants buy and sell trout and baskets of berries at prices PT = 2 and PBB = 1, respectively. Sketch Kayla's PPF and CPF, and indicate the point of production. Clearly label your graphs (i.e., indicate values for slopes, intercepts, and point of production).

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
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Chapter1: Making Economics Decisions
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2.
Kayla has 10 hours to pick
berries, to catch trout, and to invest in a net. In the absence of investment, it takes
Kayla 2 hours to pick 1 basket of berries and 2 hours to catch 1 trout. Kayla has the
option to invest by devoting 2 hours into weaving a net. If she weaves a net for 2 hours,
then it takes her 2 hours to pick 1 basket of berries and 1 hour to catch 1 trout.
Suppose that the government imposes a quantity restriction of 4 baskets of berries.
That is, Kayla is allowed to pick anything between 0 and 4 basket of berries, but not
more than that. There is no quantity restriction on trout and Kayla has the option to
invest in a net. Outside merchants buy and sell trout and baskets of berries at prices
PT = 2 and PBB 1, respectively.
=
Sketch Kayla's PPF and CPF, and indicate the point of production. Clearly label your
graphs (i.e., indicate values for slopes, intercepts, and point of production).
Transcribed Image Text:2. Kayla has 10 hours to pick berries, to catch trout, and to invest in a net. In the absence of investment, it takes Kayla 2 hours to pick 1 basket of berries and 2 hours to catch 1 trout. Kayla has the option to invest by devoting 2 hours into weaving a net. If she weaves a net for 2 hours, then it takes her 2 hours to pick 1 basket of berries and 1 hour to catch 1 trout. Suppose that the government imposes a quantity restriction of 4 baskets of berries. That is, Kayla is allowed to pick anything between 0 and 4 basket of berries, but not more than that. There is no quantity restriction on trout and Kayla has the option to invest in a net. Outside merchants buy and sell trout and baskets of berries at prices PT = 2 and PBB 1, respectively. = Sketch Kayla's PPF and CPF, and indicate the point of production. Clearly label your graphs (i.e., indicate values for slopes, intercepts, and point of production).
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