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Jacques is a skilled toy maker who is able to produce both trucks and kites. He has 8 hours a day to produce toys. The

Jacques is a skilled toy maker who is able to produce both trucks 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

(Trucks). (Kites) (Trucks) (Kites)

A 8 0 4 0

B 6 2 3 11

C 4 4 2 16

D 2 6 1 19

E 0 8 0 20

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

A. 1 kite

b. 3 kites

c. 16 kites

d. 19 kites

Now, suppose Jacques is currently using combination C, producing two trucks per day. His opportunity cost of producing a third truck per day is per day.

a. 1 kite

b. 5 kites

c. 11 kites

d. 16 kites

From the previous analysis, you can determine that as Jacques increases his production of trucks, his opportunity cost of producing one more truck .

A decreases

b. increases

c. remains constant

Suppose Jacques buys a new tool that enables him to produce twice as many trucks 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 trucks per hour, Jacques's opportunity cost of producing kites is it was previously.

A. high than

B. lower than

C. the same as

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