5. Opportunity cost and production possibilities Lorenzo is a skilled toy maker who is able to produce both trucks 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 (Trucks) (Puzzles) (Trucks) (Puzzles) A 8 4 B 6 2 3 10 C 4 4 2 16 D 6 18 E 19 On the following graph, use the blue points (circle symbol) to plot Lorenzo's initial production possibilities frontier (PPF). (? 30 25 Initial PPF 20 New PPF 15 10 5 3 5 7 PUZZLES
5. Opportunity cost and production possibilities Lorenzo is a skilled toy maker who is able to produce both trucks 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 (Trucks) (Puzzles) (Trucks) (Puzzles) A 8 4 B 6 2 3 10 C 4 4 2 16 D 6 18 E 19 On the following graph, use the blue points (circle symbol) to plot Lorenzo's initial production possibilities frontier (PPF). (? 30 25 Initial PPF 20 New PPF 15 10 5 3 5 7 PUZZLES
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:5. Opportunity cost and production possibilities
Lorenzo is a skilled toy maker who is able to produce both trucks 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
(Trucks)
(Puzzles)
(Trucks)
(Puzzles)
A
8
4
B
6
2
3
10
C
4
4
2
16
D
6
18
E
19
On the following graph, use the blue points (circle symbol) to plot Lorenzo's initial production possibilities frontier (PPF).
(?
30
25
Initial PPF
20
New PPF
15
10
5
3
5
7
PUZZLES
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