Suppose Yvette is currently using combination D, producing one boat per day. Her opportunity cost of producing a second boat per day is per day. Now, suppose Yvette is currently using combination C, producing two boats per day. Her opportunity cost of producing a third boat per day is per day. From the previous analysis, you can determine that as Yvette increases her production of boats, her opportunity cost of producing one more boat Suppose 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. Use the 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 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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Question
25
Initial PPC
20
New PPC
15
10
2
3
4 5
BOATS PER DAY
Suppose Yvette is currently using combination D, producing one boat per day. Her opportunity cost of producing a second boat per day is
per day.
Now, suppose Yvette is currently using combination C, producing two boats per day. Her opportunity cost of producing a third boat per day is
per day.
From the previous analysis, you can determine that as Yvette increases her production of boats, her opportunity cost of producing one more boat
Suppose 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. Use
the 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 is
it was previously.
BALLS PER DAY
Transcribed Image Text:25 Initial PPC 20 New PPC 15 10 2 3 4 5 BOATS PER DAY Suppose Yvette is currently using combination D, producing one boat per day. Her opportunity cost of producing a second boat per day is per day. Now, suppose Yvette is currently using combination C, producing two boats per day. Her opportunity cost of producing a third boat per day is per day. From the previous analysis, you can determine that as Yvette increases her production of boats, her opportunity cost of producing one more boat Suppose 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. Use the 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 is it was previously. BALLS PER DAY
1. Opportunity cost and production possibilities
Yvette 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 daily
output resulting from various possible combinations of her time.
Hours Producing
Produced
Choice
(Boats)
(Balls)
(Boats) (Balls)
4
B
6
2
4
4
2
14
D
6.
1
16
E
17
On the following graph, use the blue points (circle symbol) to plot Yvette's initial production possibilities curve (PPC).
30
25
Initial PPC
20
New PPC
15
00
N O
ALLS PER DAY
Transcribed Image Text:1. Opportunity cost and production possibilities Yvette 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 daily output resulting from various possible combinations of her time. Hours Producing Produced Choice (Boats) (Balls) (Boats) (Balls) 4 B 6 2 4 4 2 14 D 6. 1 16 E 17 On the following graph, use the blue points (circle symbol) to plot Yvette's initial production possibilities curve (PPC). 30 25 Initial PPC 20 New PPC 15 00 N O ALLS PER DAY
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