Suppose Dmitri is currently using combination D, producing one car per day. His opportunity cost of producing a second car per day is v per day. Now, suppose Dmitri is currently using combination C, producing two cars per day. His opportunity cost of producing a third car per day is v per day. From the previous analysis, you can determine that as Dmitri increases his production of cars, his opportunity cost of producing one more car Suppose Dmitri buys a new tool that enables him to produce twice as many cars per hour as before, but it 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 cars per hour, Dmitri's opportunity cost of producing puzzles is it was previously.

Suppose Dmitri is currently using combination D, producing one car per day. His opportunity cost of producing a second car per day is v per day. Now, suppose Dmitri is currently using combination C, producing two cars per day. His opportunity cost of producing a third car per day is v per day. From the previous analysis, you can determine that as Dmitri increases his production of cars, his opportunity cost of producing one more car Suppose Dmitri buys a new tool that enables him to produce twice as many cars per hour as before, but it 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 cars per hour, Dmitri's opportunity cost of producing puzzles is it was previously.

Brief Principles of Macroeconomics (MindTap Course List)

8th Edition

ISBN:9781337091985

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter2: Thinking Like An Economist

Section: Chapter Questions

Problem 3PA

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