1.The emirate of Dubai has 600 residents who can work in only one of two economic activities – pearl diving or academia.Last year 60 residents worked as pearl divers and caught 80 tons of pearls in...

1.The emirate of Dubai has 600 residents who can work in only one of two economic activities – pearl diving or academia.Last year 60 residents worked as pearl divers and caught 80 tons of pearls in total.The other 540 residents were employed in academia as teachers and they taught 10,000 students.Suppose that this production point is efficient.Assume that the opportunity cost of one additional ton of pearls is teaching 50 students and that this opportunity cost is constant (i.e. the production possibility frontier is a straight line).

a)(2 points)If the 60 pearl divers were to be employed in academia (in addition to the 540 people already working as teachers), how manytotalnumber of students could the emirate of Dubai have taught last year (i.e. when all 600 residents are employed in academia)?

b)(2 points)If all 540 teachers were to become pearl divers instead (in addition to the 60 pearl divers already working in the pearl diving industry), how many total tons of pearls could the emirate of Dubai have produced last year?

c)
(1 point)Draw a production possibility frontier for the emirate of Dubai in the graph below, and label Dubai’s actual production point from last year.