Now, suppose Musashi 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.15813 Musashi is a talented artist who sells hand-crafted goods on his website. Musashi currently crafts and sells both tea towels and cutting boards. Hespends 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 eachgood.Hours CraftingChoice (Tea towels) (Cutting boards) (Tea towels)ABсDE864200246843210Produced(Cutting boards)08131516 On the following graph, use the blue points (circle symbol) to plot Musashi's initial production possibilities frontier (PPF).CUTTING BOARDS30252015105O01234TEA TOWELS5678Initial PPFNew PPF?

Opportunity cost shows the forgone units of one good in choosing the other good. Comparative…

Answered: Now, suppose Musashi is currently using…

Now, suppose Musashi 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. 1 5 8 13

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Now, suppose Musashi 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.

Musashi is a talented artist who sells hand-crafted goods on his website. Musashi currently crafts and sells both tea towels and cutting boards. 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.
Hours Crafting
Choice (Tea towels) (Cutting boards) (Tea towels)
A
B
с
D
E
8
6
4
2
0
0
2
4
6
8
4
3
2
1
0
Produced
(Cutting boards)
0
8
13
15
16

On the following graph, use the blue points (circle symbol) to plot Musashi's initial production possibilities frontier (PPF).
CUTTING BOARDS
30
25
20
15
10
5
O
0
1
2
3
4
TEA TOWELS
5
6
7
8
Initial PPF
New PPF
?

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