5. Opportunity cost and production possibilitiesHubert is a skilled toy maker who is able to produce both boats and kites. He has 8 hours a day to produce toys. The following table shows the dailyoutput resulting from various possible combinations of his time.Hours ProducingProduced(Boats) (Kites) (Boats) (Kites)ChoiceA84B6244213D21168.17On the following graph, use the blue points (circle symbol) to plot Hubert's initial production possibilities frontier (PPF).3025Initial PPF20New PPF15102378BOATSKITES On the following graph, use the blue points (circle symbol) to plot Hubert's initial production possibilities frontier (PPF).3025Initial PPF20New PPF15102358BOATSSuppose Hubert is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day isper day.Now, suppose Hubert is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day isper day.From the previous analysis, you can determine that as Hubert increases his production of boats, his opportunity cost of producing one more boatSuppose Hubert buys a new tool that enables him to produce twice as many boats per hour as before, but it doesn't affect his ability to produce kites.Use the green points (triangle symbol) to plot his new PPF on the previous graph.Because he can now make more boats per hour, Hubert's opportunity cost of producing kites isit was previously.KITES

Production Possibility Curve (PPP) Shows all the possible combination of goods that an economy can…

Answered: Hours Producing Produced Choice (Boats)…

Business

Economics

Hours Producing Produced Choice (Boats) (Kites) (Boats) (Kites) A 8 4 B 6 2 3 9. 4 2 13 D 2 6. 1 16 E 8. 17

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter1: Ten Principles Of Economics

Section: Chapter Questions

Problem 2CQQ

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Question

5. Opportunity cost and production possibilities
Hubert is a skilled toy maker who is able to produce both boats and kites. 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
(Boats) (Kites) (Boats) (Kites)
Choice
A
8
4
B
6
2
4
4
2
13
D
2
1
16
8.
17
On the following graph, use the blue points (circle symbol) to plot Hubert's initial production possibilities frontier (PPF).
30
25
Initial PPF
20
New PPF
15
10
2
3
7
8
BOATS
KITES

On the following graph, use the blue points (circle symbol) to plot Hubert's initial production possibilities frontier (PPF).
30
25
Initial PPF
20
New PPF
15
10
2
3
5
8
BOATS
Suppose Hubert is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is
per day.
Now, suppose Hubert is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day is
per day.
From the previous analysis, you can determine that as Hubert increases his production of boats, his opportunity cost of producing one more boat
Suppose Hubert buys a new tool that enables him to produce twice as many boats per hour as before, but it doesn't affect his ability to produce kites.
Use the green points (triangle symbol) to plot his new PPF on the previous graph.
Because he can now make more boats per hour, Hubert's opportunity cost of producing kites is
it was previously.
KITES

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