Musashi is a talented artist who sells hand-crafted goods on his website. Musashi currently crafts and sells both crochet hats and baskets. 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. BASKETS Choice (Crochet hats) A B C D E is 30 25 20 15 10 5 0 Hours Crafting 0 1 8 6 4 On the following graph, use the blue points (circle symbol) to plot Musashi's initial production possibilities frontier (PPF). 2 0 2 3 (Baskets) (Crochet hats) 2 4 4 6 8 5 CROCHET HATS 6 Produced 4 3 2 1 0 7 (Baskets) 0 8 11 16 19 20 。 Initial PPF New PPF Suppose Musashi is currently using combination D, producing one crochet hat per day. His opportunity cost of producing a second crochet hat per day per day. Now, suppose Musashi is currently using combination C, producing two crochet hats per day. His opportunity cost of producing a third crochet hat per day is per day. From the previous analysis, you can determine that as Musashi increases his production of crochet hats, his opportunity cost of producing one more crochet hat increases
Musashi is a talented artist who sells hand-crafted goods on his website. Musashi currently crafts and sells both crochet hats and baskets. 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. BASKETS Choice (Crochet hats) A B C D E is 30 25 20 15 10 5 0 Hours Crafting 0 1 8 6 4 On the following graph, use the blue points (circle symbol) to plot Musashi's initial production possibilities frontier (PPF). 2 0 2 3 (Baskets) (Crochet hats) 2 4 4 6 8 5 CROCHET HATS 6 Produced 4 3 2 1 0 7 (Baskets) 0 8 11 16 19 20 。 Initial PPF New PPF Suppose Musashi is currently using combination D, producing one crochet hat per day. His opportunity cost of producing a second crochet hat per day per day. Now, suppose Musashi is currently using combination C, producing two crochet hats per day. His opportunity cost of producing a third crochet hat per day is per day. From the previous analysis, you can determine that as Musashi increases his production of crochet hats, his opportunity cost of producing one more crochet hat increases
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
100%
Solve it on paper!
![Musashi is a talented artist who sells hand-crafted goods on his website. Musashi currently crafts and sells both crochet hats and baskets. 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.
BASKETS
Choice (Crochet hats)
A
is
B
C
D
E
30
25
20
15
с
10
5
0
Hours Crafting
0
+
1
8
6 + NO
2
On the following graph, use the blue points (circle symbol) to plot Musashi's initial production possibilities frontier (PPF).
?
2
3
(Baskets) (Crochet hats)
0
2
4
4
6
8
5
CROCHET HATS
+
6
4
7
3
Produced
2
1
0
(Baskets)
0
11
8
16
19
20
Initial PPF
New PPF
Suppose Musashi is currently using combination D, producing one crochet hat per day. His opportunity cost of producing a second crochet hat per day
per day.
Now, suppose Musashi is currently using combination C, producing two crochet hats per day. His opportunity cost of producing a third crochet hat per
day is
per day.
From the previous analysis, you can determine that as Musashi increases his production of crochet hats, his opportunity cost of producing one more
crochet hat increases](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7388c274-e5b1-447c-bed1-a59a772617c0%2F50841e8c-9f56-4494-98d1-f3f447af69d3%2Frpjqfva_processed.png&w=3840&q=75)
Transcribed Image Text:Musashi is a talented artist who sells hand-crafted goods on his website. Musashi currently crafts and sells both crochet hats and baskets. 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.
BASKETS
Choice (Crochet hats)
A
is
B
C
D
E
30
25
20
15
с
10
5
0
Hours Crafting
0
+
1
8
6 + NO
2
On the following graph, use the blue points (circle symbol) to plot Musashi's initial production possibilities frontier (PPF).
?
2
3
(Baskets) (Crochet hats)
0
2
4
4
6
8
5
CROCHET HATS
+
6
4
7
3
Produced
2
1
0
(Baskets)
0
11
8
16
19
20
Initial PPF
New PPF
Suppose Musashi is currently using combination D, producing one crochet hat per day. His opportunity cost of producing a second crochet hat per day
per day.
Now, suppose Musashi is currently using combination C, producing two crochet hats per day. His opportunity cost of producing a third crochet hat per
day is
per day.
From the previous analysis, you can determine that as Musashi increases his production of crochet hats, his opportunity cost of producing one more
crochet hat increases
![Suppose Musashi buys a new tool that enables him to produce twice as many crochet hats per hour as before, but it doesn't affect his ability to
produce baskets. Use the green points (triangle symbol) to plot his new PPF on the previous graph.
Because he can now make more crochet hats per hour, Musashi's opportunity cost of producing baskets is higher than
it was previously.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7388c274-e5b1-447c-bed1-a59a772617c0%2F50841e8c-9f56-4494-98d1-f3f447af69d3%2F8n47p5b_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose Musashi buys a new tool that enables him to produce twice as many crochet hats per hour as before, but it doesn't affect his ability to
produce baskets. Use the green points (triangle symbol) to plot his new PPF on the previous graph.
Because he can now make more crochet hats per hour, Musashi's opportunity cost of producing baskets is higher than
it was previously.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
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.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
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)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
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-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education