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Jake is a talented artist who sells hand-crafted goods on his website. Jake currently crafts and sells both tea towels and embroidered sweaters. He spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on each good. Choice A B C D E EMBROIDERED SWEATERS 25 20 15 10 5 0 On the following graph, use the blue points (circle symbol) to plot Jake's initial production possibilities frontier (PPF). 0 1 (Tea towels) 8 6 4 2 2 0 Hours Crafting 3 4 TEA TOWELS (Embroidered sweaters) 0 2 4 6 8 5 6 7 8 Initial PPF A (Tea towels) 4 3 2 1 0 New PPF Produced ? (Embroidered sweaters) 0 12 17 19 20 Suppose Jake is currently using combination D, producing one tea towel per day. His opportunity cost of producing a second tea towel per day is per day. Now, suppose Jake is currently using combination C, producing two tea towels per day. His opportunity cost of producing a third tea towel per day is per day. From the previous analysis, you can determine that as Jake increases his production of tea towels, his opportunity cost of producing one more tea towel Suppose Jake buys a new tool that enables him to produce twice as many tea towels per hour as before, but it doesn't affect his ability to produce embroidered sweaters. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more tea towels per hour, Jake's opportunity cost of producing embroidered sweaters is it was previously.

Jake is a talented artist who sells hand-crafted goods on his website. Jake currently crafts and sells both tea towels and embroidered sweaters. He spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on each good. Choice A B C D E EMBROIDERED SWEATERS 25 20 15 10 5 0 On the following graph, use the blue points (circle symbol) to plot Jake's initial production possibilities frontier (PPF). 0 1 (Tea towels) 8 6 4 2 2 0 Hours Crafting 3 4 TEA TOWELS (Embroidered sweaters) 0 2 4 6 8 5 6 7 8 Initial PPF A (Tea towels) 4 3 2 1 0 New PPF Produced ? (Embroidered sweaters) 0 12 17 19 20 Suppose Jake is currently using combination D, producing one tea towel per day. His opportunity cost of producing a second tea towel per day is per day. Now, suppose Jake is currently using combination C, producing two tea towels per day. His opportunity cost of producing a third tea towel per day is per day. From the previous analysis, you can determine that as Jake increases his production of tea towels, his opportunity cost of producing one more tea towel Suppose Jake buys a new tool that enables him to produce twice as many tea towels per hour as before, but it doesn't affect his ability to produce embroidered sweaters. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more tea towels per hour, Jake's opportunity cost of producing embroidered sweaters is it was previously.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Jake is a talented artist who sells hand-crafted goods on his website. Jake currently crafts and sells both tea towels and embroidered sweaters. He spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on each good. Choice A B с D E MBROIDERED SWEATERS 25 10 0 1 (Tea towels) 8 6 4 2 2 0 Hours Crafting 3 On the following graph, use the blue points (circle symbol) to plot Jake's initial production possibilities frontier (PPF). 4 TEA TOWELS 5 (Embroidered sweaters) 0 2 4 6 6 8 7 8 O Initial PPF A (Tea towels) 4 New PPF 3 2 1 0 (?) Produced (Embroidered sweaters) 0 12 17 19 20 Suppose Jake is currently using combination D, producing one tea towel per day. His opportunity cost of producing a second tea towel per day is per day. Now, suppose Jake is currently using combination C, producing two tea towels per day. His opportunity cost of producing a third tea towel per day is per day. ▼ From the previous analysis, you can determine that as Jake increases his production of tea towels, his opportunity cost of producing one more tea towel Suppose Jake buys a new tool that enables him to produce twice as many tea towels per hour as before, but it doesn't affect his ability to produce embroidered sweaters. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more tea towels per hour, Jake's opportunity cost of producing embroidered sweaters is it was previously.
Transcribed Image Text:Jake is a talented artist who sells hand-crafted goods on his website. Jake currently crafts and sells both tea towels and embroidered sweaters. He spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on each good. Choice A B с D E MBROIDERED SWEATERS 25 10 0 1 (Tea towels) 8 6 4 2 2 0 Hours Crafting 3 On the following graph, use the blue points (circle symbol) to plot Jake's initial production possibilities frontier (PPF). 4 TEA TOWELS 5 (Embroidered sweaters) 0 2 4 6 6 8 7 8 O Initial PPF A (Tea towels) 4 New PPF 3 2 1 0 (?) Produced (Embroidered sweaters) 0 12 17 19 20 Suppose Jake is currently using combination D, producing one tea towel per day. His opportunity cost of producing a second tea towel per day is per day. Now, suppose Jake is currently using combination C, producing two tea towels per day. His opportunity cost of producing a third tea towel per day is per day. ▼ From the previous analysis, you can determine that as Jake increases his production of tea towels, his opportunity cost of producing one more tea towel Suppose Jake buys a new tool that enables him to produce twice as many tea towels per hour as before, but it doesn't affect his ability to produce embroidered sweaters. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more tea towels per hour, Jake's opportunity cost of producing embroidered sweaters is it was previously.
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