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BASKETS 30 25 20 15 O 10 5 0 0 + 1 2 3 4 TEA TOWELS 5 6 7 8 o Initial PPF A New PPF Suppose Crystal is currently using combination D, producing one tea towel per day. Her opportunity cost of producing a second tea towel per day is per day. Now, suppose Crystal is currently using combination C, producing two tea towels per day. Her opportunity cost of producing a third tea towel per day is per day. From the previous analysis, you can determine that as Crystal increases her production of tea towels, her opportunity cost of producing one more tea towel Suppose Crystal buys a new tool that enables her to produce twice as many tea towels 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 tea towels per hour, Crystal's opportunity cost of producing baskets is it was previously.

BASKETS 30 25 20 15 O 10 5 0 0 + 1 2 3 4 TEA TOWELS 5 6 7 8 o Initial PPF A New PPF Suppose Crystal is currently using combination D, producing one tea towel per day. Her opportunity cost of producing a second tea towel per day is per day. Now, suppose Crystal is currently using combination C, producing two tea towels per day. Her opportunity cost of producing a third tea towel per day is per day. From the previous analysis, you can determine that as Crystal increases her production of tea towels, her opportunity cost of producing one more tea towel Suppose Crystal buys a new tool that enables her to produce twice as many tea towels 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 tea towels per hour, Crystal's opportunity cost of producing baskets is it was previously.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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BASKETS 30 25 20 15 10 5 0 0 1 2 3 4 TEA TOWELS 5 6 7 8 o Initial PPF New PPF Suppose Crystal is currently using combination D, producing one tea towel per day. Her opportunity cost of producing a second tea towel per day is per day. Now, suppose Crystal is currently using combination C, producing two tea towels per day. Her opportunity cost of producing a third tea towel per day is per day. From the previous analysis, you can determine that as Crystal increases her production of tea towels, her opportunity cost of producing one more tea towel Suppose Crystal buys a new tool that enables her to produce twice as many tea towels 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 tea towels per hour, Crystal's opportunity cost of producing baskets is it was previously.
Transcribed Image Text:BASKETS 30 25 20 15 10 5 0 0 1 2 3 4 TEA TOWELS 5 6 7 8 o Initial PPF New PPF Suppose Crystal is currently using combination D, producing one tea towel per day. Her opportunity cost of producing a second tea towel per day is per day. Now, suppose Crystal is currently using combination C, producing two tea towels per day. Her opportunity cost of producing a third tea towel per day is per day. From the previous analysis, you can determine that as Crystal increases her production of tea towels, her opportunity cost of producing one more tea towel Suppose Crystal buys a new tool that enables her to produce twice as many tea towels 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 tea towels per hour, Crystal's opportunity cost of producing baskets is it was previously.
Crystal is a talented artist who sells hand-crafted goods on her website. Crystal currently crafts and sells both tea towels and baskets. She spends 8 hours 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. BASKETS Choice (Tea towels) A B C D E 30 25 20 15 10 5 Hours Crafting 0 0 8 6 4 2 0 On the following graph, use the blue points (circle symbol) to plot Crystal's initial production possibilities frontier (PPF). 2 (Baskets) (Tea towels) 0 2 4 6 8 3 4 TEA TOWELS 5 4 3 6 2 1 0 Produced 7 (Baskets) 0 10 16 19 8 20 Initial PPF New PPF
Transcribed Image Text:Crystal is a talented artist who sells hand-crafted goods on her website. Crystal currently crafts and sells both tea towels and baskets. She spends 8 hours 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. BASKETS Choice (Tea towels) A B C D E 30 25 20 15 10 5 Hours Crafting 0 0 8 6 4 2 0 On the following graph, use the blue points (circle symbol) to plot Crystal's initial production possibilities frontier (PPF). 2 (Baskets) (Tea towels) 0 2 4 6 8 3 4 TEA TOWELS 5 4 3 6 2 1 0 Produced 7 (Baskets) 0 10 16 19 8 20 Initial PPF New PPF
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