4. Suppose that Bill the Carpenter produces tables and chairs. One table requires 10 pieces of wood. One chair requires 5 pieces of wood. Assume that Bill has 100 pieces of wood. a. Find Bill's PPC for tables and chairs. Put tables on the vertical axis. Show graphically. b. What is the opportunity cost of one chair? c. If Bill instead has 200 pieces of wood, how does the PPC change? Show on the same graph. d. Now what is the opportunity cost of one chair?

4. Suppose that Bill the Carpenter produces tables and chairs. One table requires 10 pieces of wood. One chair requires 5 pieces of wood. Assume that Bill has 100 pieces of wood. a. Find Bill's PPC for tables and chairs. Put tables on the vertical axis. Show graphically. b. What is the opportunity cost of one chair? c. If Bill instead has 200 pieces of wood, how does the PPC change? Show on the same graph. d. Now what is the opportunity cost of one chair?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4. Suppose that Bill the Carpenter produces tables and chairs. One table requires 10 pieces of wood. One chair requires
5 pieces of wood. Assume that Bill has 100 pieces of wood. a. Find Bill's PPC for tables and chairs. Put tables on the
vertical axis. Show graphically. b. What is the opportunity cost of one chair? c. If Bill instead has 200 pieces of wood,
how does the PPC change? Show on the same graph. d. Now what is the opportunity cost of one chair?

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