25Initial PPC20New PPC1510234 5BOATS PER DAYSuppose Yvette is currently using combination D, producing one boat per day. Her opportunity cost of producing a second boat per day isper day.Now, suppose Yvette is currently using combination C, producing two boats per day. Her opportunity cost of producing a third boat per day isper day.From the previous analysis, you can determine that as Yvette increases her production of boats, her opportunity cost of producing one more boatSuppose Yvette buys a new tool that allows her to produce tvice as many boats per hour as before but doesn't affect her ability to produce balls. Usethe green points (triangle symbol) to plot her new PPC on the previous graph.Because she can now make more boats per hour, Yvette's opportunity cost of producing balls isit was previously.BALLS PER DAY 1. Opportunity cost and production possibilitiesYvette is a skilled toymaker who is able to produce both boats and balls. She has 8 hours a day to produce toys. The following table shows the dailyoutput resulting from various possible combinations of her time.Hours ProducingProducedChoice(Boats)(Balls)(Boats) (Balls)4B6244214D6.116E17On the following graph, use the blue points (circle symbol) to plot Yvette's initial production possibilities curve (PPC).3025Initial PPC20New PPC1500N OALLS PER DAY

Opportunity cost refers to decrease in production of good y needed to produce more good 2. Bowed…

Answered: Suppose Yvette is currently using…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider Figure 2-2 in Chapter 2. Assume the numbers on the y-axis 820 and 610 were changed to respectively 800 and 700. The opportunity cost of going from 240 to 480 units of food would now be _ and the law of increasing (opportunity) cost__ still hold. a) 100 // would b) 800 // would c) 700 // would not d) 100 // would not
Would the opportunity cost be a benefit to UPS shipping or a benefit to UPS international shipping for this example? “To begin, I began selling prints of my pictures in 2019 throughout 2020. It's now closed. USPS and UPS were the options I had during this period to ship out orders. Smaller or lighter packages were more expensive to ship with UPS, but USPS provided a low-cost alternative. UPS ships more than 220 internationally, whereas; USPS is strict about shipping to specific international destinations. I have chosen USPS over UPS; by doing this, orders were delivered on time and without damage by the United States Postal Service.”
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
1)What does the law of increasing opportunity cost?2) Does the law of increasing opportunity cost apply for the Production Possibilities Frontier in the case of Rabbits and Berries?3) If the opportunity cost of Rabbits with respect to Berries (and/or vice versa) was constant, what would the PPF look like?
Steffie's Stationary Services can produce cards and tablets. The daily production possibilities for the two products are shown below. Steffie's Stationary Services Production Possibilities (daily) Combination Cards Tablets A 150 0 B 140 10 C 120 20 D 90 30 E 50 40 F 0 50 If a card sells for $1, Steffie's Stationary Services will need a price per tablet of $ produce 50 tablets. in order to
Two neighboring island nations, Seychelles and Mauritius, produce iPad's, coffee, or a combination of both. Suppose that they each have 4 million labor hours available per week for production. The following table gives the amount of each product that can be produced using one hour of labor: Country Mauritius Seychelles Mauritius' opportunity cost of produing 1 iPad is iPads (per hour of labor) 12 of coffee. Therefore, 8 Initially, suppose Mauritius uses 1 million hours per week to produce iPads and 3 million hours per week to produce coffee, while Seycheles uses 3 million hours of labor per week to produce iPads and 1 million hours per week to produce coffee. Consequently, Mauritius produces 12 million iPads and 72 million pounds of coffee, and Seychelles produces 24 million iPads and 32 million pounds of coffee. Assume there are no other countries willing to trade with them. So, if Mauritius and Seychelles don't trade with each other, they can only consume what they can produce using…
Suppose there exist two imaginary countries, Sequoia and Denall. Their labor forces are each capable of supplying four million hours per week that can be used to produce almonds, shorts, or some combination of the two. The following table shows the amount of almonds or shorts that can be produced by one hour of labor. Almonds Country (Pounds per hour of labor) Sequoia Denall Suppose that initially Denall uses 1 million hours of labor per week to produce almonds and 3 million hours per week to produce shorts, while Sequoia uses 3 million hours of labor per week to produce almonds and 1 million hours per week to produce shorts. As a result, Sequola produces 12 million pounds of almonds and 16 million pairs of shorts, and Denall produces 6 million pounds of almonds and 36 million pairs of shorts. Assume there are no other countries willing to engage in trade, so, in the absence of trade between these two countries, each country consumes the amount of almonds and shorts it produces.…
Amy and Bill are fixing up their house by painting walls and installing electrical outlets. In one hour, Amy can paint 8 walls, or install 6 outlets. In one hour, Bill can paint 5 walls, or install 5 outlets In order to maximize their work per hour, (Click to select) should just paint walls, and (Click to select) ♥ should just install outlets
Consider two neighboring island countries called Bellissima and Felicidad. They each have 4 million labor hours available per week that they can use to produce corn, jeans, or a combination of both. The following table shows the amount of corn or jeans that can be produced using 1 hour of labor. Country Corn Jeans (Bushels per hour of labor) (Pairs per hour of labor) Bellissima 8 16 Felicidad 5 20 Initially, suppose Bellissima uses 1 million hours of labor per week to produce corn and 3 million hours per week to produce jeans, while Felicidad uses 3 million hours of labor per week to produce corn and 1 million hours per week to produce jeans. Consequently, Bellissima produces 8 million bushels of corn and 48 million pairs of jeans, and Felicidad produces 15 million bushels of corn and 20 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount…
From the previous analysis, you can determine that as Musashi increases his production of tea towels, his opportunity cost of producing one more tea towel decreases increases remains constant
The prairie dog has always been considered a problem for Canadian cattle ranchers. They dig holes that cattle and horses can step in, and they eat grass necessary for cattle. Recently, ranchers have discovered that there is a demand for prairie dogs as pets. In some areas, prairie dogs can sell for as high as $150. Cattlemen are now fencing off prairie dog towns on their land so these towns will not be disturbed by their cattle. Draw a production possibilities frontier demonstrating a rancher’s production option between cattle production and prairie dog production, showing increasing opportunity cost and what would happen in each of the following situations (using a separate graph for each situation). The government grants new leases to ranchers, giving them 10,000 new hectares of grassland each for grazing. A drought destroys most of the available grass for grazing of cattle, but not prairie dogs since they also eat plant roots.
So, let's look at the last combination. What is the opportunity cost of one cake if we move from combination D to combination E? (If needed, round to one decimal place.)

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