Question

Millsville can use its limited resources to produce only applesauce and apple juice. Below, you are provided with feasible combinations of applesauce and apple juice that Millsville can produce and that employ all of Millsville’s productive resources.

Applesauce (jars)	Apple Juice (bottles)
5	0
4	2
3	4
2	6
1	8
0	10

Task 1: In the graph below, construct Millsville’s PPF in blue. Be sure to place jars of applesauce on the horizontal axis and bottles of apple juice on the vertical axis.

Task 2: Suppose that Millsville’s ability to produce applesauce is enhanced. More specifically, it is now able to produce two more jars of apple sauce for each bottle of apple juice it produces. In the graph above, construct Millsville’s NEW PPF in red.

Task 3: Before growth in its productive capacity with respect to apple sauce, Millsville could produce 2 bottles of apple juice when it produced 4 jars of apple sauce. Now, it can produce 6 bottles of apple juice when it produces 4 jars of apple sauce. Can you explain how Millsville appears to be more productive in producing apple juice when only its productivity with respect to apple sauce changed?

Answer 1

1)

Applesauce	Apple Juice
5	0
4	2
3	4
2	6
1	8
0	10

2)

New Apple Sauce	Apple Juice
7	0
6	2
5	4
4	6
3	8
2	10

3) There was production of 2 bottle of apple juice and 4 bottles of apple sauce. After technological advancement, 6 bottles of apple juice and 4 bottles of apple sauce is produced. It shows that more of apple juice is produced but we are not considering the fact that even after technological advancement of apple sauce we are producing the same units of it. We must be using our resources for apple juice saved from the production of apple sauce which raised its production level.