Participation Homework #2 ($6,000): Due Thursday, September 19th by the end of your scheduled section.Name: ______ Jessica Matza ______ Section: _____004______ PSU User ID (abc5xxx): ____ jmm6862 ____ Directions: All homework answers MUST be TYPED. NO EMAIL SUBMISSIONS. The homework is collected in class. If you can’t be in class then send your homework with a friend or turn it in early by sliding it under my door (306 Kern) with your name and section time clearly marked. NO late homework is accepted.Reminder: You may work in groups but you must write up you own unique responses. You may ask questions about the homework on the Facebook group – however, DO NOT SIMPLY ask what the answer is. Explain what you think the answer is and your logic/reasoning, so that someone else can provide real help.Consider the diagram above 1 (a) What is the opportunity cost as you move from point K to J? ($500)As you move from point K to J you are increasing the number of apple pies you make and therefore decreasing in blueberry pies. The opportunity cost would be 7 blueberry pies.1 (b) What happens to the opportunity cost as you move from point L to M to N? Please explain your answer ($500)The opportunity cost increases as you more from left to right on the PPF. 2. Consider a production possibilities frontier (PPF) that compares the ancient production of agricultural products to art and literature. Now suppose the plow is invented and agricultural productivity greatly increases. How would this affect the PPF? Please include a diagram in your answer (either typed or neatly hand drawn). Assume the PPF has a concave shape (same as Q1). Place agriculture on the vertical axis and art & literature on the horizontal axis. ($1,000)With an increase in technology (plow) the economy will be more productive. This would make a shift in the PPF for both goods because you are putting in the same input but getting more output. 3. The figure below depicts the production possibilities frontiers (PPFs) for two people who can allocate the same amount of time between building wooden boats and solving crimes. What is DiNozzo’s opportunity cost of solving a crime? ($500)DiNozzo’s opportunity cost of solving a crime is making.05 wooden boats. 4. Two friends, Rachel and Joey, enjoy baking bread and making apple pies. Rachel takes two hours to bake 1 loaf of bread and one hour to make 1 pie. Joey takes four hours tobake 1 loaf of bread and four hours to make 1 pie. What is Joey’s opportunity cost of baking 1 pie? ($500)Joey’s opportunity cost of baking 1 pie would be baking 1 loft of bread. 5. Consider the table below. I have included some background information for students who don’t follow NFL. ($2,000)Pass Yards: a statistic that measures the amount of yards gained by an offensive team on completed passes.Rush Yards: a statistic in football that records the total number of yards gained by a single player as the result of a rushing play (or plays), in which the player carries the football (as opposed to receiving a pass).We assume that when they pass, they give up rushing yardage & when they rush, they give up passing yardage.New York Giants New England PatriotsPass Yards 300 320Rush Yards 90 110A) What is the Giants’ opportunity cost of passing? ($250).3 rushingB) What is the Giants’ opportunity cost of rushing? ($250)3.33 passingC) What is the Patriots’ opportunity cost of passing? ($250).34 rushingD) What is the Patriots’ opportunity cost of rushing? ($250)2.91 passingE) If we could trade between teams, passing yards for rushing yards (think of them as tradeable services), which team should produce passing yardage? Explain your answer. ($500)The Giants should produce passing yardage because it costs them less of the rushing yards to make one passing yard.F) If we could trade between teams, passing yards for rushing yards (think of them as tradeable services), which team should produce rushing yardage? Explain your answer. ($500)The Patriots should produce the rushing yardage because it costs them less of the passing yards to make one rushing yard.6. Note: this topic will be covered in week 4 of semester. Suppose that Canyon Pizza likes torun a “late night special” after 11pm. The owners have contacted you for some advice. One of the owners tells you “We want to increase the demand for our pizza”. They have 2 marketing ideas in mind:(1) Reduce the price of large pizzas(2) Reduce the price of a complementary good, e.g. offer two half-priced bottles or cans of soda with every large pizza orderedAs a student of ECON 102, what should you recommend? In your answer, show the impactof marketing idea (1) and (2) on demand for pizza on separate graphs.