1.Kenji is a skilled toymaker 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.

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

Plot the graph

Suppose Kenji is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is

Now, suppose Kenji is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day is

From the previous analysis, you can determine that as Kenji increases his production of boats, his opportunity cost of producing one more boat

Suppose Kenji buys a new tool that allows him to produce twice as many boats per hour as before but doesn't affect his ability to produce kites, used X to plot his new PPC on the previous graph

Because he can now make more boats per hour, Kenji's opportunity cost of producing kites is..........it was previously

2. Suppose South Africa produces only two goods: alfalfa and DVDs. The following graph shows South Africa's current production possibilities curve, along with six output combinations represented by black points (plus symbols) labelled A to F.

\fPoint Inefficient Efficient Attainable Not attainable A D E FO 480 PPC 400 320 CONSTRUCTION VEHICLES (Thousands) 240 180 80 PPC 380 450 540 0 90 180 270 WHEAT (Millions of bushels)