New PPF1510356CARSSuppose Becky is currently using combination D, producing one car per day. Her opportunity cost of producing a second car per day isper day.Now, suppose Becky is currently using combination C, producing two cars per day. Her opportunity cost of producing a third car per day isper day.From the previous analysis, you can determine that as Becky increases her production of cars, her opportunity cost of producing one more carSuppose Becky buys a new tool that enables her to produce twice as many cars per hour as before, but it doesn't affect her ability to produce balls.Use the green points (triangle symbol) to plot her new PPF on the previous graph.it was previously.Because she can now make more cars per hour, Becky's opportunity cost of producing balls isBALLS Choice(Cars)(Balls)(Cars)(Balls)84B62311442176.1920On the following graph, use the blue points (circle symbol) to plot Becky's initial production possibilities frontier (PPF).(?3025Initial PPF20New PPF15104.67.3CARSBALLS

Answered: per day. Now, suppose Becky is…

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

New PPF
15
10
3
5
6
CARS
Suppose Becky is currently using combination D, producing one car per day. Her opportunity cost of producing a second car per day is
per day.
Now, suppose Becky is currently using combination C, producing two cars per day. Her opportunity cost of producing a third car per day is
per day.
From the previous analysis, you can determine that as Becky increases her production of cars, her opportunity cost of producing one more car
Suppose Becky buys a new tool that enables her to produce twice as many cars per hour as before, but it doesn't affect her ability to produce balls.
Use the green points (triangle symbol) to plot her new PPF on the previous graph.
it was previously.
Because she can now make more cars per hour, Becky's opportunity cost of producing balls is
BALLS

Choice
(Cars)
(Balls)
(Cars)
(Balls)
8
4
B
6
2
3
11
4
4
2
17
6.
19
20
On the following graph, use the blue points (circle symbol) to plot Becky's initial production possibilities frontier (PPF).
(?
30
25
Initial PPF
20
New PPF
15
10
4.
6
7.
3
CARS
BALLS

Expert Solution

Step 1

Opportunity Cost: It is the potential benefit an individual, investor or a business misses out on choosing an alternative course of production over the initial course of production.

Here the two course of production is given;

Production of cars

Production of balls

In the given chart different course of production course is charted in producing cars over balls.

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