Homework Help is Here – Start Your Trial Now!
Business
Economics
Hours Producing Produced Choice (Boats) (Kites) (Boats) (Kites) A 8 4 B 6 2 3 9. 4 2 13 D 2 6. 1 16 E 8. 17

Hours Producing Produced Choice (Boats) (Kites) (Boats) (Kites) A 8 4 B 6 2 3 9. 4 2 13 D 2 6. 1 16 E 8. 17

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
See similar textbooks
icon
Related questions
Question
5. Opportunity cost and production possibilities Hubert is a skilled toy maker who is able to produce both boats and kites. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Hours Producing Produced (Boats) (Kites) (Boats) (Kites) Choice A 8 4 B 6 2 4 4 2 13 D 2 1 16 8. 17 On the following graph, use the blue points (circle symbol) to plot Hubert's initial production possibilities frontier (PPF). 30 25 Initial PPF 20 New PPF 15 10 2 3 7 8 BOATS KITES
Transcribed Image Text:5. Opportunity cost and production possibilities Hubert is a skilled toy maker who is able to produce both boats and kites. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Hours Producing Produced (Boats) (Kites) (Boats) (Kites) Choice A 8 4 B 6 2 4 4 2 13 D 2 1 16 8. 17 On the following graph, use the blue points (circle symbol) to plot Hubert's initial production possibilities frontier (PPF). 30 25 Initial PPF 20 New PPF 15 10 2 3 7 8 BOATS KITES
On the following graph, use the blue points (circle symbol) to plot Hubert's initial production possibilities frontier (PPF). 30 25 Initial PPF 20 New PPF 15 10 2 3 5 8 BOATS Suppose Hubert is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is per day. Now, suppose Hubert is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day is per day. From the previous analysis, you can determine that as Hubert increases his production of boats, his opportunity cost of producing one more boat Suppose Hubert buys a new tool that enables him to produce twice as many boats per hour as before, but it doesn't affect his ability to produce kites. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more boats per hour, Hubert's opportunity cost of producing kites is it was previously. KITES
Transcribed Image Text:On the following graph, use the blue points (circle symbol) to plot Hubert's initial production possibilities frontier (PPF). 30 25 Initial PPF 20 New PPF 15 10 2 3 5 8 BOATS Suppose Hubert is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is per day. Now, suppose Hubert is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day is per day. From the previous analysis, you can determine that as Hubert increases his production of boats, his opportunity cost of producing one more boat Suppose Hubert buys a new tool that enables him to produce twice as many boats per hour as before, but it doesn't affect his ability to produce kites. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more boats per hour, Hubert's opportunity cost of producing kites is it was previously. KITES
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Non-durable goods
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.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:
9780190931919
Author:
NEWNAN
Publisher:
Oxford University Press
Principles of Economics (12th Edition)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS