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Simone is a talented artist who sells hand-crafted goods on her website. Simone currently crafts and sells both tea towels 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 Choice (Tea towels) (Cutting boards) A B C D E CUTTING BOARDS 30 25 20 8 6 15 4 10 2 0 5 Suppose Simone is currently using combination D, producing one tea towel per day. Her opportunity cost of producing a second tea towel per day is 3 cutting boards ▼ per day. 0 0 2 Now, suppose Simone is currently using combination C, producing two tea towels per day. Her opportunity cost of producing a third tea towel per day is ▼per day. 0 4 From the previous analysis, you can determine that as Simone increases her production of tea towels, her opportunity cost of producing one more tea towel 1 6 Suppose Simone buys a new tool that enables her to produce twice as many tea towels 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. 8 Because she can now make more tea towels per hour, Simone's opportunity cost of producing cutting boards is On the following graph, use the blue points (circle symbol) to plot Simone's initial production possibilities frontier (PPF). 2 (Tea towels) (Cutting boards) 4 Produced 3 2 1 0 3 TEA TOWELS 5 0 9 6 13 16 17 7 8 Initial PPF it was previously. New PPF

Simone is a talented artist who sells hand-crafted goods on her website. Simone currently crafts and sells both tea towels 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 Choice (Tea towels) (Cutting boards) A B C D E CUTTING BOARDS 30 25 20 8 6 15 4 10 2 0 5 Suppose Simone is currently using combination D, producing one tea towel per day. Her opportunity cost of producing a second tea towel per day is 3 cutting boards ▼ per day. 0 0 2 Now, suppose Simone is currently using combination C, producing two tea towels per day. Her opportunity cost of producing a third tea towel per day is ▼per day. 0 4 From the previous analysis, you can determine that as Simone increases her production of tea towels, her opportunity cost of producing one more tea towel 1 6 Suppose Simone buys a new tool that enables her to produce twice as many tea towels 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. 8 Because she can now make more tea towels per hour, Simone's opportunity cost of producing cutting boards is On the following graph, use the blue points (circle symbol) to plot Simone's initial production possibilities frontier (PPF). 2 (Tea towels) (Cutting boards) 4 Produced 3 2 1 0 3 TEA TOWELS 5 0 9 6 13 16 17 7 8 Initial PPF it was previously. New PPF

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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Simone is a talented artist who sells hand-crafted goods on her website. Simone currently crafts and sells both tea towels 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 Choice (Tea towels) (Cutting boards) A B C D E CUTTING BOARDS 30 25 20 8 6 15 4 10 2 5 0 0 0 0 2 1 4 Suppose Simone is currently using combination D, producing one tea towel per day. Her opportunity cost of producing a second tea towel per day is 3 cutting boards ▼ per day. 6 Now, suppose Simone is currently using combination C, producing two tea towels per day. Her opportunity cost of producing a third tea towel per day is per day. 8 From the previous analysis, you can determine that as Simone increases her production of tea towels, her opportunity cost of producing one more tea towel Suppose Simone buys a new tool that enables her to produce twice as many tea towels 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 tea towels per hour, Simone's opportunity cost of producing cutting boards is 2 On the following graph, use the blue points (circle symbol) to plot Simone's initial production possibilities frontier (PPF). (Tea towels) 4 3 2 1 4 Produced 0 3 TEA TOWELS 5 (Cutting boards) 6 0 9 13 16 17 7 8 O Initial PPF 4 it was previously. New PPF
Transcribed Image Text:Simone is a talented artist who sells hand-crafted goods on her website. Simone currently crafts and sells both tea towels 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 Choice (Tea towels) (Cutting boards) A B C D E CUTTING BOARDS 30 25 20 8 6 15 4 10 2 5 0 0 0 0 2 1 4 Suppose Simone is currently using combination D, producing one tea towel per day. Her opportunity cost of producing a second tea towel per day is 3 cutting boards ▼ per day. 6 Now, suppose Simone is currently using combination C, producing two tea towels per day. Her opportunity cost of producing a third tea towel per day is per day. 8 From the previous analysis, you can determine that as Simone increases her production of tea towels, her opportunity cost of producing one more tea towel Suppose Simone buys a new tool that enables her to produce twice as many tea towels 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 tea towels per hour, Simone's opportunity cost of producing cutting boards is 2 On the following graph, use the blue points (circle symbol) to plot Simone's initial production possibilities frontier (PPF). (Tea towels) 4 3 2 1 4 Produced 0 3 TEA TOWELS 5 (Cutting boards) 6 0 9 13 16 17 7 8 O Initial PPF 4 it was previously. New PPF
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