00:01
Hello, in this question we are given that there are two countries, hairland and dehrland.
00:10
They produce two commodities.
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First is milk and second is corn.
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The maximum that can be produced is 8 tons of corn in hairland and 2 truckloads of milk.
00:34
Similarly, for dehrland, it's 2 truckloads and 2 tons of corn.
00:43
So if we draw the ppf for these commodities, it is indicated to us that the ppf are a straight line in the first part of the question.
00:59
So if we plot milk in terms of truckloads on the x -axis and on the y -axis, if we plot the corn in tons.
01:13
So for hairland, we have 8 tons of corn and 2 tons of milk.
01:27
This will be our ppf for hairland.
01:33
We can mark it ab.
01:36
Similarly, for dehrland, it can produce 2 tons of corn or 2 tons of milk.
01:45
So this will be the ppf for dehrland.
01:49
We can mark it cb.
01:52
Moving on, if in hairland, there is a proposal for 1 truckload of milk and 2 tons of corn.
02:15
So here on the ppf, we observe that it lies within this ppf.
02:25
So we can say that yes, it is possible.
02:36
Production is possible.
02:41
Next.
02:43
Similarly, for dehrland, we have 1 truckload of milk and 2 tons of corn.
03:00
So we can say again that since it lies, we can say since the combination lies within the production set, it can be produced.
03:40
Next.
03:44
Here we have to find out the opportunity cost for producing milk for hairland.
04:00
So opportunity cost will be the amount of corn that you sacrifice and divided by the gain of milk you get...