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Hubert is a skilled toy maker who is able to produce both trains and drums. He has 8 hours a day to produce toys. The
Hubert is a skilled toy maker who is able to produce both trains and drums. 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 (Trains) (Drums) 0 Produced (Trains) (Drums) 4 2 3 11 4 4 2 16 D 2 1 19 E 0 20 On the following graph, use the blue points (circle symbol) to plot Hubert's initial production possibilities frontier (PPF). 30 - 25 Initial PPF 20 New PPF DRUMS 15 10 5 0 4 7 8 TRAINS Suppose Hubert is currently using combination, producing one train per day. His opportunity cost of producing a second train per days per day Now, suppose Hubert is currently using combination producing two trains per day. His opportunity cost of producing a third train per day is per day From the previous analysis, you can determine that es Hubert increases his production of train, he opportunity cost of producing one more tran Suppose Hubert buys a new tool that enables hun to produce twice as many trains per bor as before, but it doesn't affect his ability to reduce drums. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more trains per hour Hubert's opportunity cost of producing drums is it was previously
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