Suppose Kevin is currently using combination D, producing one train per day. His opportunity cost of producing a second train per day is_____per day. Now, suppose Kevin is currently using combination C, producing two trains per day. His opportunity cost of producing a third train per day is_____per day. From the previous analysis, you can determine that as Kevin increases his production of trains, his opportunity cost of producing one more train_____. Suppose Kevin buys a new tool that enables him to produce twice as many trains per hour as before, but it doesn't affect his ability to produce kites. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more trains per hour, Kevin's opportunity cost of producing kites is_______it was previously.
Suppose Kevin is currently using combination D, producing one train per day. His opportunity cost of producing a second train per day is_____per day. Now, suppose Kevin is currently using combination C, producing two trains per day. His opportunity cost of producing a third train per day is_____per day. From the previous analysis, you can determine that as Kevin increases his production of trains, his opportunity cost of producing one more train_____. Suppose Kevin buys a new tool that enables him to produce twice as many trains per hour as before, but it doesn't affect his ability to produce kites. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more trains per hour, Kevin's opportunity cost of producing kites is_______it was previously.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Suppose Kevin is currently using combination D, producing one train per day. His opportunity cost of producing a second train per day is_____per day.
Now, suppose Kevin is currently using combination C, producing two trains per day. His opportunity cost of producing a third train per day is_____per day.
From the previous analysis, you can determine that as Kevin increases his production of trains, his opportunity cost of producing one more train_____.
Suppose Kevin buys a new tool that enables him to produce twice as many trains per hour as before, but it doesn't affect his ability to produce kites. Use the green points (triangle symbol) to plot his new PPF on the previous graph.
Because he can now make more trains per hour, Kevin's opportunity cost of producing kites is_______it was previously.
Transcribed Image Text:Attempts
Average / 5
5. Opportunity cost and production possibilities
Kevin is a skilled toy maker who is able to produce both trains and kites. 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
(Trains)
(Kites)
(Trains)
(Kites)
A
8
4
В
2
3
8
C
4
4
2
13
D
6.
1
15
E
16
Transcribed Image Text:On the following graph, use the blue points (circle symbol) to plot Kevin's initial production possibilities frontier (PPF).
(?)
30
25
Intial PPF
20
New PPF
10
1
4
7
TRAINS
15
5
KITES
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