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New PPF a) g 15 a: n 10 5 0 . : : : : : : : : o 1 2 3 4 5

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New PPF a) g 15 a: n 10 5 0 . : : : : : : : : o 1 2 3 4 5 e 7 8 TRUCKS Suppose Crystal is currently using combination D, producing one truck per day. Her opportunity cost of producing a second truck per day is V per day. Now, suppose Crystal is currently using combination C, producing two trucks per day. Her opportunity cost of producing a third truck per day is V per day. From the previous analysis, you can determine that as Crystal increases her production of trucks, her opportunity cost of producing one more truck V Suppose Crystal 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 produce drums. Use the green points (triangle symbol) to plot her new PPF on the previous graph. Because she can now make more trucks per hour, Crystal's opportunity cost of producing drums is V it was previously. Continue without saving

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