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

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Poornima is a skilled toy maker who is able to produce both trains and balls. 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 Proded Choice (Trains) (Balls) (Trains) (Balls) 0 13 15 16 2 On the following graph, use the blue points (circle symbol) to plot Poornimas initial production possibilities frontier (PPF) 25 Initial PPP

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RAINS Suppose Poornima is currently using combination D, producing one train per day. Her opportunity cost of producing a second train per day is per day Now, suppose Poornima is currently using combination C, producing two trains per day. Her opportunity cost of producing a third train per day is per day rom the previous analysis, you can determine that as Poornima increases her production of trains, her opportunity cost of producing one more train her to produce twice as many trains per hour as before, but it doesnt afect her ability to produce balls. Use the green points (triangle symbol) to plot her new PPF on the previous graph. Because she can now make more trains per hour, Poornimas opportunity cost of producing balls is it was previously Grade It Now Save & Continue Continue without saving

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