Suppose Megan is currently using combination D, producing one knit cap per day. Her opportunity cost of producing a second knit cap per day is per day. Now, suppose Megan is currently using combination C, producing two knit caps per day. Her opportunity cost of producing a third knit cap per day is per day. From the previous analysis, you can determine that as Megan increases her production of knit caps, her opportunity cost of producing one more knit cap Suppose Megan buys a new tool that enables her to produce twice as many knit caps per hour as before, but it doesn't affect her ability to produce baskets. Use the green points (triangle symbol) to plot her new PPF on the previous graph
Suppose Megan is currently using combination D, producing one knit cap per day. Her opportunity cost of producing a second knit cap per day is per day. Now, suppose Megan is currently using combination C, producing two knit caps per day. Her opportunity cost of producing a third knit cap per day is per day. From the previous analysis, you can determine that as Megan increases her production of knit caps, her opportunity cost of producing one more knit cap Suppose Megan buys a new tool that enables her to produce twice as many knit caps per hour as before, but it doesn't affect her ability to produce baskets. Use the green points (triangle symbol) to plot her new PPF on the previous graph
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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