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There are two goods, A and B. Suppose the production possibilities frontier (PPF) of a country is given by QB = (2500 - 0.25×QA2)1/2. The slope of this PPF is - 0.25QA/Q(notice that it is not constant, it depends on how much of each good is produced, so if Q= 8 and Q= 4, the slope is -0.5).

Q1:If the relative price of good A in terms of good B is 2/3, how much of good A will the economy produce?

Q2:If the relative price of good A in terms of good B is 2/3, how much of good B will the economy produce?

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