Suppose Musashi is currently using combination D, producing one tea towel per day. His opportunity cost of producing a second tea towel per day is _______ per day. 121315 On the following graph, use the blue points (circle symbol) to plot Musashi's initial production possibilities frontier (PPF).CUTTING BOARDS30252015105O01234TEA TOWELS5678Initial PPFNew PPF? Musashi is a talented artist who sells hand-crafted goods on his website. Musashi currently crafts and sells both tea towels and cutting boards. Hespends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on eachgood.Hours CraftingChoice (Tea towels) (Cutting boards) (Tea towels)ABсDE864200246843210Produced(Cutting boards)08131516

Musashi is a talented artist who sells hand-crafted goods on his websites. Musashi currently crafts…

Answered: Suppose Musashi is currently using…

Suppose Musashi is currently using combination D, producing one tea towel per day. His opportunity cost of producing a second tea towel per day is _______ per day. 1 2 13 15

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Suppose Musashi is currently using combination D, producing one tea towel per day. His opportunity cost of producing a second tea towel per day is _______ per day.

On the following graph, use the blue points (circle symbol) to plot Musashi's initial production possibilities frontier (PPF).
CUTTING BOARDS
30
25
20
15
10
5
O
0
1
2
3
4
TEA TOWELS
5
6
7
8
Initial PPF
New PPF
?

Musashi is a talented artist who sells hand-crafted goods on his website. Musashi currently crafts and sells both tea towels and cutting boards. He
spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on each
good.
Hours Crafting
Choice (Tea towels) (Cutting boards) (Tea towels)
A
B
с
D
E
8
6
4
2
0
0
2
4
6
8
4
3
2
1
0
Produced
(Cutting boards)
0
8
13
15
16

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Eddie Guitars 32 28 24 20 16 12 8 4 0 Tubas 0 1 2 3 4 5 6 7 8 Dave Guitars 25 20 15 10 5 0 Tubas 0 1 2 3 4 5 35 30 25 20 15 10 5 0 30 25 20 15 10 5 0 0 0 2 1 2 4 3 6 4 8 5 10 6 Eddie and Dave both produce guitars and tubas. They produce a given amount of each per month as seen in the tables above. Given the production possibilities curves of each individual above, answer the following: Who has the comparative advantage in the production of guitars? Eddie, because he is able to produce a greater number of guitars compared to Dave Dave, because his opportunity cost of producing a guitar is 5 tubas compared to Eddie's opportunity cost of producing a guitar of 4 tubas Eddie, because his opportunity cost of producing a guitar is 0.25 tubas compared to Dave's opportunity cost of producing a guitar of 0.20 tubas Dave, because he is able to produce a lower number of guitars compared to Eddie Dave, because he is able to produce a greater number of guitars compared to Eddie Dave, because his…