Economics 201- Lab 21. The following table provides information about the production possibilities frontier for the company Better Exercise Equipment and Recreation (BEER), which produces baseballbats and tennis rackets.a. Plot and connect the points to create BEER’s production possibilities frontier.0 100 200 300 400 500050100150200250300350400450500b. Is the production of 200 bats and 200 rackets efficient? Why or why not?No, that point is not on the Production Possibilities Frontier, which means it is not using all the supplies available.c. Suppose that BEER was currently operating at point B (100 bats and 400 rackets). What is the opportunity cost of producing an additional 100 bats?The opportunity cost is 40 rackets, because in order to produce 100 more bats, you will need to produce 40 less rackets.d. Suppose that BEER was currently operating at point D (300 bats and 300 rackets). Now, what is the opportunity cost of producing an additional 100 bats?The opportunity cost is 100 rackets, because in order to produce 100 more bats, you will need to produce 100 less rackets.e. Are the opportunity costs in part c and d the same? Why or why not? What happens to the opportunity cost of producing bats as more and more of them are produced (as you move from point A to point F)?Point Bats RacketsA 0 420B 100 400C 200 360D 300 300E 400 200F 500 0They are not the same because the more bats that are produced, the more rackets that have to not be produced.f. Now move in the opposite direction. What happens to the cost of producing rackets as more and more are produced?You make less rackets each time as you give up the same number of bats each time.g. Finally, suppose a technological advance allows BEER to produce rackets more efficiently. What would be the effect on the PPF? Draw it below. 2. Opportunity CostHoly cow! There are two concerts in Knoxville tonight, both at 8 PM. You obviously can’t be in both places at once.At Thompson Boling Arena, Lady Gaga is playing. You REALLY love Lady Gaga and would be willing to pay up to $100 to see her. Currently, her tickets cost $80.At the Tennessee Theatre, Miley Cyrus is playing. You like her okay and would be willing to pay up to $40 to see her. Currently her tickets cost $30. a. Assuming everything else equal, should you go to see Lady Gaga? Why or why not?Yes, because you like her more and her tickets are currently $20 below what you are willing to pay, whereas Miley’s tickets are only $10 below what you are willing to pay to see her.b. Suppose that Miley’s tickets only cost $15. Would that change your decision? Why orwhy not?Yes, because Miley’s tickets are then $25 cheaper than what you are willing topay.3. Why on average do doctors and lawyers earn a higher wage per hour than many other professions?Doctors and lawyers have higher degrees and are in higher demand than many other professions. These jobs also come with higher opportunity costs.4. Let’s suppose that you are finishing your junior year, and beginning your senior year. You are earning a major in Accounting, which requires 18 hours (in addition to some of otherbusiness classes). You have already taken 12 hours and are only 6 hours away (2 classes).You are scheduled to graduate on time – hooray! However, on a lark, you have taken Chemical Engineering classes and have decided that is a better fit for you. That major requires 28 hours, and you have already taken 13. That means another 15, along with other classes, which will in all likelihood require an additional year of school.Should you change majors? What is the benefit and cost of switching majors?Switching MajorsThe solution will vary depending on the individual. Each individual places a different emphasis on how much liking your job matters and how much higher wages matter.Don't SwitchBenefitsgraduate on time1 year of wagesCostsnot doing what you likelosing a year of schoolDo SwitchBenefitsdo what you like betterpossible higher salaryCosts1 year of school1 year no