ENGR.ECONOMIC ANALYSIS
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ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Deborah is a skilled toy maker who is able to produce both boats 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
|
||
|---|---|---|---|---|
|
(Boats)
|
(Kites)
|
(Boats)
|
(Kites)
|
|
| A | 8 | 0 | 4 | 0 |
| B | 6 | 2 | 3 | 10 |
| C | 4 | 4 | 2 | 16 |
| D | 2 | 6 | 1 | 19 |
| E | 0 | 8 | 0 | 20 |
On the following graph, use the blue points (circle symbol) to plot Deborah's initial production possibily
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The production possibility curve (PPC) is a diagram that shows the entirety of the various bundle of yield that can be produced given current assets and innovation. At times called the PPF, the PPC delineates shortage and trade-offs. It is known as the opportunity curve as it is the curve which shows the mixes of two merchandise and ventures that can be delivered with more full usage of a given measure of resources in the most effective manner and with a given creation innovation. In the given question input and output schedule is given for the boats and kites of daily output.
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