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Question: 11 opportunity cost and production possibilities becky is a skilled...

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11. Opportunity cost and production possibilities Becky is a skilled toy maker who is able to produce both cars and kites. She has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of her time. Hours Producing Produced Choice (Cars) (Kites) (Cars) (Kites) 12 17 19 20
On the following graph, use the blue points (circle symbol) to plot Beckys initial production possibilities frontier (PPF) 30 T 25 Initial PPF 20 New PPF CD 15 t 10 CARS
Suppose Beck y is currently using combination D, producing one car per day. Her opportunity cost of producing a second car per day is per day. Now, suppose Becky is currently using combination C, producing two cars per day. Her opportunity cost of producing a third car per day is per day. From the previous analysis, you can determine that as Becky increases her production of cars, her opportunity cost of producing one more car Suppose Becky buys a new tool that enables her to produce twice as many cars per hour as before, but it doesnt a Use the green points (triangle symbol) to plot her new PPF on the previous graph Because she can now make more cars per hour, Beckys opportunity cost of producing kites isY was previously.
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