Suppose Van 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 Van 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 Van increases his production of boats, his opportunity cost of producing one more boat Suppose Van buys a new tool that allows him to produce twice as many boats per hour as before but doesn't affect his ability to produce balls. Use the green points (triangle symbol) to plot his new PPC on the previous graph. Because he can now make more boats per hour, Van's opportunity cost of producing balls is it was previously.

Suppose Van 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 Van 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 Van increases his production of boats, his opportunity cost of producing one more boat Suppose Van buys a new tool that allows him to produce twice as many boats per hour as before but doesn't affect his ability to produce balls. Use the green points (triangle symbol) to plot his new PPC on the previous graph. Because he can now make more boats per hour, Van's opportunity cost of producing balls is it was previously.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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