1.

a)

Guns(units) 300,000 280,000 240,000 180,000 100,000 0

Butter(cans) 0 100,000 200,000 300,000 400,000 500,000

Oppurtunity Cost per Unit of Butter 0.0 0.2 0.4 0.6 0.8 1.0

b) 100,000 unit of butter(cans) is increased when the production of gun is reduced from 240,000 units to 180,000 units. c) The shape of Production Possibility Curve is Concave . The basis for my answer is when the production of guns is increase,the production of butter have to be decreased . d) e) Two possible actions the Company Serba Mampu wants to increase the output level to 240,000 guns and 300,000 cans of butter are