Suppose Clancy is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is______ per day. Now, suppose Clancy is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day is _______ per day. From the previous analysis, you can determine that as Clancy increases his production of boats, his opportunity cost of producing one more boat ___________ . Suppose Clancy buys a new tool that enables him to produce twice as many boats per hour as before, but it doesn't affect his ability to produce kites. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more boats per hour, Clancy's opportunity cost of producing kites is higher than or lower than it was previously.
Suppose Clancy is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is______ per day. Now, suppose Clancy is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day is _______ per day. From the previous analysis, you can determine that as Clancy increases his production of boats, his opportunity cost of producing one more boat ___________ . Suppose Clancy buys a new tool that enables him to produce twice as many boats per hour as before, but it doesn't affect his ability to produce kites. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more boats per hour, Clancy's opportunity cost of producing kites is higher than or lower than it was previously.
Chapter1: What Is Economics
Section1.A: Using Graphs: A Review
Problem 3TY
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Suppose Clancy is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is______ per day.
Now, suppose Clancy is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day is _______ per day.
From the previous analysis, you can determine that as Clancy increases his production of boats, his opportunity cost of producing one more boat ___________ .
Suppose Clancy buys a new tool that enables him to produce twice as many boats per hour as before, but it doesn't affect his ability to produce kites. Use the green points (triangle symbol) to plot his new PPF on the previous graph.
Because he can now make more boats per hour, Clancy's opportunity cost of producing kites is higher than or lower than it was previously.
Transcribed Image Text:Clancy is a skilled toy maker who is able to produce both boats and kites. He has 8 hours a day to produce toys. The following table shows the daily
output resulting from various possible combinations of his time.
Hours Producing
Produced
Choice
(Вoats)
(Kites)
(Вoats)
(Kites)
A
8
B
6.
3
8
4
4
13
D
6
1
15
8
16
On the following graph, use the blue points (circle symbol) to plot Clancy's initial production possibilities frontier (PPF).
30
25
Initial PPF
20
New PPF
15
10
5
+
+
1
3
6
8
BOATS
KITES
10
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