Suppose Jacques 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 Jacques 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 Jacques increases his production of boats, his opportunity cost of producing one more boat Suppose Jacques 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. artunity cost of producing balls is it was previously.

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Chapter1: Making Economics Decisions
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5. Opportunity cost and production possibilities
Jacques 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.
Hours Producing
Produced
Choice
(Boats)
(Balls)
(Boats)
(Balls)
A
8
4
6.
3
10
4
4
15
1
17
0.
8.
18
On the following graph, use the blue points (circle symbol) to plot Jacques's initial production possibilities frontier (PPF).
30
Initial PPF
20
New PPF
15
0.
1.
2.
3.
4
6.
7.
8.
BOATS
10
25
BALLS
Transcribed Image Text:5. Opportunity cost and production possibilities Jacques 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. Hours Producing Produced Choice (Boats) (Balls) (Boats) (Balls) A 8 4 6. 3 10 4 4 15 1 17 0. 8. 18 On the following graph, use the blue points (circle symbol) to plot Jacques's initial production possibilities frontier (PPF). 30 Initial PPF 20 New PPF 15 0. 1. 2. 3. 4 6. 7. 8. BOATS 10 25 BALLS
Suppose Jacques 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 Jacques 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 Jacques increases his production of boats, his opportunity cost of producing one more boat
Suppose Jacques 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, Jacques's opportunity cost of producing balls is
it was previously.
Transcribed Image Text:Suppose Jacques 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 Jacques 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 Jacques increases his production of boats, his opportunity cost of producing one more boat Suppose Jacques 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, Jacques's opportunity cost of producing balls is it was previously.
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