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3. Consider two alternatives for Stromboli in 2018. In case (a), its inhabitants eat 60 million pizzas and build 6,000 pizza ovens. In case (b), the population eats 15 million pizzas but builds 18,000 ovens. Which case will lead to a more generous production possibilities frontier for Stromboli in 2018?
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Case B, where the inhabitants are eating only 15 million pizza and building 18,000 ovens will make a more generous production possibility frontier. It is because in second case they are investing more in the capital good that is the pizza oven. it will help them increase the pizza production in future and shift the PPF to the right.

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