A small country produces only two goods, cars and cakes. Given its limited resources, this country has the following production possibilities: Cars Cakes XXXXXXXXXX XXXXXXXXXXa. Draw the production...

A small country produces only two goods, cars and cakes. Given its limited resources, this country has the following production possibilities: Cars Cakes 0 200 25 180 50 130 75 70 100 0 a. Draw the production possibilities curve. b. Suppose car production uses mainly machines and cake production uses mainly labor. Show what happens to the curve when the number of machines increases, but the amount of labor remains unchanged.