(Solved): Suppose that there are 7 million workers in Mexico and that each of these workers can produce eith ...

Suppose that there are 7 million workers in Mexico and that each of these workers can produce either 2 cars or 50 bushels of wheat in a year. The opportunity cost of producing a car in Mexico is 25 - bushels of wheat, and the opportunity cost of producing a bushel of in cars. Use the blue line (circle symbol) to draw Mexico's production possibilities frontier (PPF) on the following graph. Then use the black point (plus symbol) to indicate the consumption bundle Mexico can achieve without trade if it chooses to consume 6 million cars.