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Unformatted text preview: 1. What is the maximum number of schools that can be built? The maximum number of prisons? 2. What is the opportunity cost of building one more prison? 3. Draw the PPC for schools and prisons. 4. Consider that the price of prisons production falls to $1.5 million each. Show this on the PPC. 5. What is the new opportunity cost of producing one more prison? 6. After the prison production cost falls, the production costs for schools rises to $2 million each. Show this on the PPC. 7. The people vote to spend half of the available funds on prisons and half on schools. Draw a PPC for prisons and schools and show these production options....
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- Fall '08