bobduncan15
09.09.2019 •
Social Studies
Opportunity cost and production possibilities alyssa is a skilled toy maker 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. choice hours producing produced (boats) (balls) (boats) (balls) a 8 0 4 0 b 6 2 3 10 c 4 4 2 16 d 2 6 1 19 e 0 8 0 20 on the following graph, use the blue points (circle symbol) to plot alyssa's initial production possibilities frontier (ppf). initial ppfnew ppf012345678302520151050ballsboats suppose alyssa 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 alyssa 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 alyssa increases her production of boats, her opportunity cost of producing one more boat . suppose alyssa buys a new tool that enables her to produce twice as many boats per hour as before, but it doesn't affect her ability to produce balls. use the green points (triangle symbol) to plot her new ppf on the previous graph. because she can now make more boats per hour, alyssa's opportunity cost of producing balls is it was previously.
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