The Problem: Below is problem 2 just as it appears on Problem Set 1. There will be links on each page so you can easily get back here if you need to see the numbers again.

2. There are two people working for TABTTE (There Are Better Things Than Economics) Ltd.: Mr. Cross, a specialist in producing crossword puzzles and Mr. Logic, a specialist for tricky riddles. Both work 8 hours per day. Mr Cross can produce either two crossword puzzles or one tricky riddle per hour. Mr. Logic can produce either one crossword puzzle or three tricky riddles per hour.
a) Draw the production possibility frontier (PPF) for TABTTE Ltd., assuming that crossword puzzles and tricky riddles are their only products.
b) Explain the shape of the PPF.
c) What are the opportunity costs of producing an additional crossword puzzle if the momentary production of crossword puzzles is 14 per day, what if it is 20 per day?
d) Is it efficient to produce 15 crossword puzzles and 22 logic riddles per day? Why or why not?

Step 1: When faced with a new problem, the first thing you should do is decide what kind of problem is it?