Question

Construct a production possibility frontier to illustrate Tom's earnings potential between the two careers if initially, he was not working as a carpenter, then he worked one-week per month, then two-weeks per month, then three-weeks per month, finally four weeks per month (assuming only four weeks in a month)

Answer 1

The production possibility frontier in this case is a line, which shows the potential combinations of working on both positions and the maximal possible amount earned. If y-axis shows working as a lecturer and x-axis shows working as a carpenter, then this line starts from the point (0; R20000) and ends at the point (R16000; 0), if there is 20 working days per month (5 days per week).