Beth is a skilled toy maker who is able to produce both boats and balls. She has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of her time. Choice Hours Producing Produced (Boats) (Balls) (Boats) (Balls) A 8 0 4 0 B 6 2 3 12 C 4 4 2 17 D 2 6 1 19 E 0 8 0 20 On the following graph, use the blue points (circle symbol) to plot Beth's initial production possibilities frontier (PPF). Initial PPFNew PPF012345678302520151050BALLSBOATS Suppose Beth is currently using combination D, producing one boat per day. Her opportunity cost of producing a second boat per day is per day. Now, suppose Beth is currently using combination C, producing two boats per day. Her opportunity cost of producing a third boat per day is per day. From the previous analysis, you can determine that as Beth increases her production of boats, her opportunity cost of producing one more boat . Suppose Beth buys a new tool that enables her to produce twice as many boats per hour as before, but it doesn't affect her ability to produce balls. Use the green points (triangle symbol) to plot her new PPF on the previous graph. Because she can now make more boats per hour, Beth's opportunity cost of producing balls is it was previously

Microeconomics: Principles & Policy

14th Edition

ISBN:9781337794992

Author:William J. Baumol, Alan S. Blinder, John L. Solow

Publisher:William J. Baumol, Alan S. Blinder, John L. Solow

Chapter1: What Is Economics?

Section1.A: Appendix Using Graphs: A Review

Problem 3TY

See similar textbooks

Related questions

Question

Beth is a skilled toy maker who is able to produce both boats and balls. She has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of her time.

Choice	Hours Producing	Produced
(Boats)	(Balls)	(Boats)	(Balls)
A	8	0	4	0
B	6	2	3	12
C	4	4	2	17
D	2	6	1	19
E	0	8	0	20

On the following graph, use the blue points (circle symbol) to plot Beth's initial production possibilities frontier (PPF).

Initial PPFNew PPF012345678302520151050BALLSBOATS

Suppose Beth is currently using combination D, producing one boat per day. Her opportunity cost of producing a second boat per day is per day.

Now, suppose Beth is currently using combination C, producing two boats per day. Her opportunity cost of producing a third boat per day is per day.

From the previous analysis, you can determine that as Beth increases her production of boats, her opportunity cost of producing one more boat .

Suppose Beth buys a new tool that enables her to produce twice as many boats per hour as before, but it doesn't affect her ability to produce balls. Use the green points (triangle symbol) to plot her new PPF on the previous graph.

Because she can now make more boats per hour, Beth's opportunity cost of producing balls is it was previously.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 3 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.