Thinking Like an Economist MobileEnabled Graded Assignment R

Thinking Like an Economist (Mobile-Enabled) Graded Assignment Read Chapter 2 Back to Assignment Due Tuesday 0116.18 at 1145 PM Attempt average 10 Feli is @ skilled tw myker who isable to produce totho and urns lle has 8 hours @ dav to trnducetovs. Tr talowing table shans the dail autput reaulting rom various pesbia cambinations at his tie Hours Producing (Drums) ChoOR (Cars) (Cars) (Drilms) 20 On the frilog grap, usc the bie paints (cvcc symbal) to piot Fcox oucton posacoc fronticrPRF Inta PFF Now PFF 912 Suppose fele is arrerly using coentiratior D. producing one cr per dav. His arecet unity st of prodxing seordcar per day is per day. Now, poe Felox is currently using combinon Cproduzing two car per day. His opportunity cost ofproduing a third car pr da i From the prRviOus analysis, vau can dstenmne that Falix incrRRGR his preductian at cars, his opportunty cost ot procucina one mare car suococc Fc.x buys ncw too! tnat crobics him to produce twice many cars por hour as before, but t docent rect tr übity to produce arums. Use the green ponts tanziesymbal o th new PPF on the prenous grach. Continue wthouta

Solution

Answer for 1)

Using combination D Telix cars produce 1 car in 2hours and 19 drums in 6 hours if one more car is produced then opportuntiy cost is to invest more 2 hours hence (19/6*2) drums would be forgone i.e. 6 drums in total per day is an opportunity cost

Answer for 2)

Similarly when combiantion C is used then to produce one more car the firm has to give up 8 drums per day

Answer for 3)

Drums per hour when combination B is used then opportunity cost in terms of Drums is 5.5 drums per hour

combinaton C then opportunity cost in terms of Drums is 4 drums per hour

hence opportunity cost of producing one more car in terms of drums increases