Chapter 21Home has 1200 units of labor available. It can produce two goods, apples and bananas. The unit labor requirement in apple production is 3, while in banana production it is 2. aGraph out the production possibilities frontier: bWhat is the opportunity cost of apples in terms of bananas?cIn the absence of trade, what would the price of apples in terms of bananas be? In the absence of trade, since labor is the only factor of produ
