Suppose Antonio is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is per day. Now, suppose Antonio is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day is per day. From the previous analysis, you can determine that as Antonio increases his production of boats, his opportunity cost of producing one more boat Suppose Antonio buys a new tool that enables him to produce twice as many boats per hour as before, but it doesn't affect his ability to produce balls. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more boats per hour, Antonio's opportunity cost of producing balls is It was previously.

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
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Chapter1: Making Economics Decisions
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Suppose Antonio is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is
per day.
Now, suppose Antonio is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day is
per day.
From the previous analysis, you can determine that as Antonio increases his production of boats, his opportunity cost of producing one more boat
Suppose Antonio buys a new tool that enables him to produce twice as many boats per hour as before, but it doesn't affect his ability to produce balls.
Use the green points (triangle symbol) to plot his new PPF on the previous graph.
Because he can now make more boats per hour, Antonio's opportunity cost of producing balls is
it was previously.
Transcribed Image Text:Suppose Antonio is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is per day. Now, suppose Antonio is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day is per day. From the previous analysis, you can determine that as Antonio increases his production of boats, his opportunity cost of producing one more boat Suppose Antonio buys a new tool that enables him to produce twice as many boats per hour as before, but it doesn't affect his ability to produce balls. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more boats per hour, Antonio's opportunity cost of producing balls is it was previously.
Antonio is a skilled toy maker who is able to produce both boats and balls. He has 8 hours a day to produce toys. The following table shows the daily
output resulting from various possible combinations of his time.
Choice (Boats)
8
A
B
C
D
E
BALLS
8
30
20
15
Hours Producing
10
5
6
4
2
On the following graph, use the blue points (circle symbol) to plot Antonio's initial production possibilities frontier (PPF).
0
Produced
(Balls) (Boats)
0
4
2
3
4
2
1
6
8
0
(Balls)
0
11
15
18
19
Initial PPF
New PPF
Transcribed Image Text:Antonio is a skilled toy maker who is able to produce both boats and balls. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Choice (Boats) 8 A B C D E BALLS 8 30 20 15 Hours Producing 10 5 6 4 2 On the following graph, use the blue points (circle symbol) to plot Antonio's initial production possibilities frontier (PPF). 0 Produced (Balls) (Boats) 0 4 2 3 4 2 1 6 8 0 (Balls) 0 11 15 18 19 Initial PPF New PPF
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