Musashi is a talented artist who sells hand-crafted goods on his website. Musashi currently crafts and sells both crochet hats and baskets. He spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on each good. BASKETS Choice (Crochet hats) A B C D E is 30 25 20 15 10 5 0 Hours Crafting 0 1 8 6 4 On the following graph, use the blue points (circle symbol) to plot Musashi's initial production possibilities frontier (PPF). 2 0 2 3 (Baskets) (Crochet hats) 2 4 4 6 8 5 CROCHET HATS 6 Produced 4 3 2 1 0 7 (Baskets) 0 8 11 16 19 20 。 Initial PPF New PPF Suppose Musashi is currently using combination D, producing one crochet hat per day. His opportunity cost of producing a second crochet hat per day per day. Now, suppose Musashi is currently using combination C, producing two crochet hats per day. His opportunity cost of producing a third crochet hat per day is per day. From the previous analysis, you can determine that as Musashi increases his production of crochet hats, his opportunity cost of producing one more crochet hat increases

Musashi is a talented artist who sells hand-crafted goods on his website. Musashi currently crafts and sells both crochet hats and baskets. He spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on each good. BASKETS Choice (Crochet hats) A B C D E is 30 25 20 15 10 5 0 Hours Crafting 0 1 8 6 4 On the following graph, use the blue points (circle symbol) to plot Musashi's initial production possibilities frontier (PPF). 2 0 2 3 (Baskets) (Crochet hats) 2 4 4 6 8 5 CROCHET HATS 6 Produced 4 3 2 1 0 7 (Baskets) 0 8 11 16 19 20 。 Initial PPF New PPF Suppose Musashi is currently using combination D, producing one crochet hat per day. His opportunity cost of producing a second crochet hat per day per day. Now, suppose Musashi is currently using combination C, producing two crochet hats per day. His opportunity cost of producing a third crochet hat per day is per day. From the previous analysis, you can determine that as Musashi increases his production of crochet hats, his opportunity cost of producing one more crochet hat increases

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter2: Choice In A World Of Scarcity

Section: Chapter Questions

Problem 12RQ: Why is a production possibilities frontier typically drawn as a curve, rather than a straight line?

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