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Question: alyssa is a skilled toy maker who is able to...

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Alyssa is a skilled toy maker who is able to produce both trucks 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.

Choice

Hours Producing

Produced

(Trucks)

(Kites)

(Trucks)

(Kites)

A 8 0 4 0
B 6 2 3 8
C 4 4 2 14
D 2 6 1 16
E 0 8 0

17

Suppose Alyssa is currently using combination D, producing one truck per day. Her opportunity cost of producing a second truck per day is per day.

Now, suppose Alyssa is currently using combination C, producing two trucks per day. Her opportunity cost of producing a third truck per day is per day.

From the previous analysis, you can determine that as Alyssa increases her production of trucks, her opportunity cost of producing one more truck .

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