Suppose Kyoko is currently using combination D, producing one picture frame per day. Her opportunity cost of producing a second picture frame per day is per day. Now, suppose Kyoko is currently using combination C, producing two picture frames per day. Her opportunity cost of producing a third picture frame per day is per day. From the previous analysis, you can determine that as Kyoko increases her production of picture frames, her opportunity cost of producing one more picture frame Suppose Kyoko buys a new tool that enables her to produce twice as many picture frames per hour as before, but it doesn't affect her ability to produce cutting boards. Use the green points (triangle symbol) to plot her new PPF on the previous graph. Because she can now make more picture frames per hour, Kyoko's opportunity cost of producing cutting boards is it was previously. Kyoko is a talented artist who sells hand-crafted goods on her website. Kyoko currently crafts and sells both picture frames and cutting boards. She spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of her time is spent on each good. Hours Crafting Produced Choice (Picture frames) (Cutting boards) (Picture frames) (Cutting boards) A BCDE 8 6 0 4 0 2 3 8 4 2 14 2 6 16 0 8 17 On the following graph, use the blue points (circle symbol) to plot Kyoko's initial production possibilities frontier (PPF). ? CUTTING BOARDS 30 25 20 15 10 5 0 1 2 3 5 6 7 8 Initial PPF A New PPF
Suppose Kyoko is currently using combination D, producing one picture frame per day. Her opportunity cost of producing a second picture frame per day is per day. Now, suppose Kyoko is currently using combination C, producing two picture frames per day. Her opportunity cost of producing a third picture frame per day is per day. From the previous analysis, you can determine that as Kyoko increases her production of picture frames, her opportunity cost of producing one more picture frame Suppose Kyoko buys a new tool that enables her to produce twice as many picture frames per hour as before, but it doesn't affect her ability to produce cutting boards. Use the green points (triangle symbol) to plot her new PPF on the previous graph. Because she can now make more picture frames per hour, Kyoko's opportunity cost of producing cutting boards is it was previously. Kyoko is a talented artist who sells hand-crafted goods on her website. Kyoko currently crafts and sells both picture frames and cutting boards. She spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of her time is spent on each good. Hours Crafting Produced Choice (Picture frames) (Cutting boards) (Picture frames) (Cutting boards) A BCDE 8 6 0 4 0 2 3 8 4 2 14 2 6 16 0 8 17 On the following graph, use the blue points (circle symbol) to plot Kyoko's initial production possibilities frontier (PPF). ? CUTTING BOARDS 30 25 20 15 10 5 0 1 2 3 5 6 7 8 Initial PPF A New PPF
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:Suppose Kyoko is currently using combination D, producing one picture frame per day. Her opportunity cost of producing a second picture frame per
day is
per day.
Now, suppose Kyoko is currently using combination C, producing two picture frames per day. Her opportunity cost of producing a third picture frame
per day is
per day.
From the previous analysis, you can determine that as Kyoko increases her production of picture frames, her opportunity cost of producing one more
picture frame
Suppose Kyoko buys a new tool that enables her to produce twice as many picture frames per hour as before, but it doesn't affect her ability to
produce cutting boards. Use the green points (triangle symbol) to plot her new PPF on the previous graph.
Because she can now make more picture frames per hour, Kyoko's opportunity cost of producing cutting boards is
it was previously.
Transcribed Image Text:Kyoko is a talented artist who sells hand-crafted goods on her website. Kyoko currently crafts and sells both picture frames and cutting boards. She
spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of her time is spent on each
good.
Hours Crafting
Produced
Choice (Picture frames) (Cutting boards) (Picture frames)
(Cutting boards)
A
BCDE
8
6
0
4
0
2
3
8
4
2
14
2
6
16
0
8
17
On the following graph, use the blue points (circle symbol) to plot Kyoko's initial production possibilities frontier (PPF).
?
CUTTING BOARDS
30
25
20
15
10
5
0
1
2
3
5
6
7
8
Initial PPF
A
New PPF
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