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There are two goods, A and B. Suppose the production possibilities frontier (PPF) of a country...

There are two goods, A and B. Suppose the production possibilities frontier (PPF) of a country is given by QB = (100 − 2×QA^2)^1/2. The slope of this PPF is − 2QA/QB (notice that it is not constant, it depends on how much of each good is produced, so if QA = 4 and QB = 8, the slope is −1). Finally, assume that the price of good A is 12 and the price of good B is 4.

1. How much of good A will be produced?

2. How much of good B will be produced?

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