Homework Help is Here – Start Your Trial Now!
Business
Economics
4. Opportunity cost and production possibilities Nick is a skilled toy maker who is able to produce both boats and puzzles. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Hours Producing Produced Choice (Boats) (Puzzles) (Boats) (Puzzles) A 8. 4. B 6 2 11 4 2. 16 D 2 6 1 19 E 8 20 On the following graph, use the blue points (circle symbol) to plot Nick's initial production possibilities frontier (PPF). (? 30 25 Initial PPF 20 New PPF 10 5 3 4 6 7 8 BOATS Suppose Nick is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is v per day. Now, suppose Nick is currently using combination C, producing two boats per day. His opportunity cost of producing third boat per day is v per day. From the previous analysis, you can determine that as Nick increases his production of boats, his opportunity cost of producing one more boat Suppose Nick buys a new tool that enables him to produce twice as many boats per hour as before, but doesn't affect his ability to produce puzzles. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more boats per hour, Nick's opportunity cost of producing puzzles is v it was previously. PUZZLES

4. Opportunity cost and production possibilities Nick is a skilled toy maker who is able to produce both boats and puzzles. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Hours Producing Produced Choice (Boats) (Puzzles) (Boats) (Puzzles) A 8. 4. B 6 2 11 4 2. 16 D 2 6 1 19 E 8 20 On the following graph, use the blue points (circle symbol) to plot Nick's initial production possibilities frontier (PPF). (? 30 25 Initial PPF 20 New PPF 10 5 3 4 6 7 8 BOATS Suppose Nick is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is v per day. Now, suppose Nick is currently using combination C, producing two boats per day. His opportunity cost of producing third boat per day is v per day. From the previous analysis, you can determine that as Nick increases his production of boats, his opportunity cost of producing one more boat Suppose Nick buys a new tool that enables him to produce twice as many boats per hour as before, but doesn't affect his ability to produce puzzles. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more boats per hour, Nick's opportunity cost of producing puzzles is v it was previously. PUZZLES

Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN:9780078747663
Author:McGraw-Hill
Publisher:McGraw-Hill
Chapter1: What Is Economics
Section: Chapter Questions
Problem 23AA
See similar textbooks
icon
Related questions
Question

Please help me by constructing the graph and answering the related questions for this Macroeconomics problem. Thanks!

4. Opportunity cost and production possibilities Nick is a skilled toy maker who is able to produce both boats and puzzles. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Hours Producing Produced Choice (Boats) (Puzzles) (Boats) (Puzzles) A 8. 4. B 6 2 11 4 2. 16 D 2 6 1 19 E 8 20 On the following graph, use the blue points (circle symbol) to plot Nick's initial production possibilities frontier (PPF). (? 30 25 Initial PPF 20 New PPF 10 5 3 4 6 7 8 BOATS Suppose Nick is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is v per day. Now, suppose Nick is currently using combination C, producing two boats per day. His opportunity cost of producing third boat per day is v per day. From the previous analysis, you can determine that as Nick increases his production of boats, his opportunity cost of producing one more boat Suppose Nick buys a new tool that enables him to produce twice as many boats per hour as before, but doesn't affect his ability to produce puzzles. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more boats per hour, Nick's opportunity cost of producing puzzles is v it was previously. PUZZLES
Transcribed Image Text:4. Opportunity cost and production possibilities Nick is a skilled toy maker who is able to produce both boats and puzzles. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Hours Producing Produced Choice (Boats) (Puzzles) (Boats) (Puzzles) A 8. 4. B 6 2 11 4 2. 16 D 2 6 1 19 E 8 20 On the following graph, use the blue points (circle symbol) to plot Nick's initial production possibilities frontier (PPF). (? 30 25 Initial PPF 20 New PPF 10 5 3 4 6 7 8 BOATS Suppose Nick is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is v per day. Now, suppose Nick is currently using combination C, producing two boats per day. His opportunity cost of producing third boat per day is v per day. From the previous analysis, you can determine that as Nick increases his production of boats, his opportunity cost of producing one more boat Suppose Nick buys a new tool that enables him to produce twice as many boats per hour as before, but doesn't affect his ability to produce puzzles. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more boats per hour, Nick's opportunity cost of producing puzzles is v it was previously. PUZZLES
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps with 1 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Economic Policy
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Recommended textbooks for you
Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
Economics
ISBN:
9780078747663
Author:
McGraw-Hill
Publisher:
Glencoe/McGraw-Hill School Pub Co
Economics:
Economics:
Economics
ISBN:
9781285859460
Author:
BOYES, William
Publisher:
Cengage Learning
Essentials of Economics (MindTap Course List)
Essentials of Economics (MindTap Course List)
Economics
ISBN:
9781337091992
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Exploring Economics
Exploring Economics
Economics
ISBN:
9781544336329
Author:
Robert L. Sexton
Publisher:
SAGE Publications, Inc
Brief Principles of Macroeconomics (MindTap Cours…
Brief Principles of Macroeconomics (MindTap Cours…
Economics
ISBN:
9781337091985
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Micro Economics For Today
Micro Economics For Today
Economics
ISBN:
9781337613064
Author:
Tucker, Irvin B.
Publisher:
Cengage,
SEE MORE TEXTBOOKS