There is an economy consisting of only two people, Fred and Robin, who produce and consume two goods: gallons of juice and gallons of beer. In 1 week, Robin can produce 25 gallons of juice or 5 gallons of beer.

There is an economy consisting of only two people, Fred and Robin, who produce and consume two goods: gallons of juice and gallons of beer. In 1 week, Robin can produce 25 gallons of juice or 5 gallons of beer. Fred can produce 12 gallons of juice or 4 gallons of beer. Assume both goods can be produced in continuous quantities.

b) Draw the PPF for the economy with gallons of juice on the vertical axis. Be sure to specifically label both intercepts, give the MRT at every point and give the specific coordinates of any point where the MRT changes. (1 point)

How do you find the MRT change, and how do I know which person to put on top? Is it the person with the comparative advantage for the x axis?

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