Final answer:
To plot the PPF, assign popcorn and cotton candy to the x-axis and y-axis respectively. Connect the points in a concave shape to represent diminishing returns. Moving from point A to El means producing more cotton candy while decreasing popcorn production. Point J is inefficient, located inside the PPF curve. Point K is unattainable, located outside the PPF curve.
Step-by-step explanation:
a. Plotting the PPF
To plot the PPF (Production Possibilities Frontier) for popcorn and cotton candy, we can assign popcorn to the x-axis (horizontal) and cotton candy to the y-axis (vertical). The points on the graph represent different combinations of popcorn and cotton candy production. To form a smooth PPF, we connect the points in a concave shape, indicating the concept of diminishing returns.
b. Point A (O) to Point El
To move from point A (O) to point El, we follow the PPF downward. This represents producing more cotton candy (y-axis) by decreasing the production of popcorn (x-axis) while staying on the PPF curve.
c. Point J (Inefficient)
Point J on the PPF represents an inefficient production point. It is located inside the PPF curve, indicating that we can produce more popcorn and cotton candy without sacrificing the production of the other. This inefficiency can result from underutilizing resources or inefficient resource allocation.
d. Point K (Unattainable)
Point K on the PPF represents an unattainable production point. It is located outside the PPF curve, indicating that the combination of popcorn and cotton candy is not feasible given the current resources and technology constraints.