Question

. Opportunity cost and production possibilities Yvette is a skilled toy maker who is able to produce both trucks and balls. She has 8 hours a day to produce toys. The following canie ishtiws s hoe deil cinutput resulting from various possible 19 On the following graph, use the blue plot Yvette's initial production (circle symbol) to Suppose Yvette is currently using combination D, producing one truck per day. Her opportunity cöst of producing a second per day is per day Now, su two trucks per day. Her opportunity cost of producing a third truck per day is Yvette is currently using combination C, producing per day From the increases her production of trucks, her opportunity cost of producing one more truck vious ana you can determine that as Yvette Suppose Yvette buys a new tool that enables her to produce twice as many trucks per hour as before, but it doesn't affect her ability to symbol) to plot her new PPF on the previous g balls. Use the green points (triangle Because she can now make more trucks per hour, Yvette's opportunity cost of producing balls is it was previously

Answer 1

Suppose that there is a person-person Y she produces two goods-trucks and balls. Plot the Suppose that the person is currently producing at point that's means that person produces 1 truck and 18 balls. In order to produce the 2nd second truck, she has to give up 2 balls (-18 -16) Suppose that the person is currently producing at point C that's means that person produces 2 trucks and 16 balls. In order to produce the 3rd second truck, she has to give up 6 balls (=18 - 16) From this analysis, it can be concluded that the as person increases her production of trucks, her opportunity cost of producing one more truck increases it means the person has to give up more and more units of other goods to get more of truck. Plot both the PPF. Initial PPF New PPF BALLS TRUCKS Blue line is initial PPF and green line is new PPF. Because she can now make more trucks per hour, PersonY's opportunity cost of producing balls is higher than it was previously. Blank 1: 2 balls Blank 2: 6 balls Blank 3: increases Blank 4: higher Note: According to HOMEWORKLIB POLICY, only first question must be attempted by an expert at a time. Please post other questions separately