Suppose Valerie is currently using combination D, producing one crochet hat per day. Her opportunity cost of producing a second crochet hat per dayper day.isNow, suppose Valerie is currently using combination C, producing two crochet hats per day. Her opportunity cost of producing a third crochet hat perday isper day.From the previous analysis, you can determine that as Valerie increases her production of crochet hats, her opportunity cost of producing one morecrochet hatSuppose Valerie buys a new tool that enables her to produce twice as many crochet hats per hour as before, but it doesn't affect her ability to producebaskets. Use the green points (triangle symbol) to plot her new PPF on the previous graph..Because she can now make more crochet hats per hour, Valerie's opportunity cost of producing baskets isit was previously. Valerie is a talented artist who sells hand-crafted goods on her website. Valerie currently crafts and sells both crochet hats and baskets. She spends 8hours a day working on crafts. The following table gives different daily output scenarios depending on how much of her time is spent on each good.Hours CraftingChoice (Crochet hats) (Baskets)(Baskets)024ABсDE302520861542068Produced(Crochet hats) (Baskets)0101618194On the following graph, use the blue points (circle symbol) to plot Valerie's initial production possibilities frontier (PPF).?3210-oInitial PPFANew PPFOn the following graph, use the blue points (circle symbol) to plot Valerie's initial production possibilities frontier (PPF).(?)30152520151050D25CROCHET HATS0-O-Initial PPFANew PPFSuppose Valerie is currently using combination D, producing one crochet hat per day. Her opportunity cost of producing a second crochet hat per dayper day.

Opportunity cost is the cost of producing 1 good in terms of other good. Opportunity cost shows the…

Suppose Valerie is currently using combination D, producing one crochet hat per day. Her opportunity cost of producing a second crochet hat per day per day. is Now, suppose Valerie is currently using combination C, producing two crochet hats per day. Her opportunity cost of producing a third crochet hat per day is per day. From the previous analysis, you can determine that as Valerie increases her production of crochet hats, her opportunity cost of producing one more crochet hat Suppose Valerie buys a new tool that enables her to produce twice as many crochet hats per hour as before, but it doesn't affect her ability to produce baskets. Use the green points (triangle symbol) to plot her new PPF on the previous graph.. Because she can now make more crochet hats per hour, Valerie's opportunity cost of producing baskets is it was previously.

Suppose Valerie is currently using combination D, producing one crochet hat per day. Her opportunity cost of producing a second crochet hat per day per day. is Now, suppose Valerie is currently using combination C, producing two crochet hats per day. Her opportunity cost of producing a third crochet hat per day is per day. From the previous analysis, you can determine that as Valerie increases her production of crochet hats, her opportunity cost of producing one more crochet hat Suppose Valerie buys a new tool that enables her to produce twice as many crochet hats per hour as before, but it doesn't affect her ability to produce baskets. Use the green points (triangle symbol) to plot her new PPF on the previous graph.. Because she can now make more crochet hats per hour, Valerie's opportunity cost of producing baskets is it was previously.

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter3: Interdependence And The Gains From Trade

Section: Chapter Questions

Problem 3CQQ

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