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4. Opportunity cost and production possibilities Now, Suppose Sharon is currently using combination C, producing two trains per day. Her opportunity cost of producing a third train per day is 7 per day. Sharon is a skilled toy maker who is able to produce both trains and puzzles. She has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of her time. 1 puzzle ious analysis, you can determine that as Sharon increases her production of trains, her opportunity cost of producing one more train 5 puzzles Hours Producing Produced 8 puzzles Choice (Trains) (Puzzles) (Trains) (Puzzles) on buys a new tool that enables her to produce twice as many trains per hour as before, but it doesn't affect her ability to produce 14 puzzles he green points (triangle symbol) to plot her new PPF on the previous graph. 8 Because she can now make more trains per hour, Sharon's opportunity cost of producing puzzles is it was previously. 14 H NW 16 a 17 From the previous analysis, you can determine that as Sharon increases her production of trains, her opportunity cost of producing one more train decreases On the following graph, use the blue points (circle symbol) to plot Sharon's initial production possibilities frontier (PPF). s a new tool that enables her to produce twice as many trains per hour as before, but it doesn't affect her ability to produce increases en points (triangle symbol) to plot her new PDF on the previous graph. (?) remains constant her car now make more trains per hour, Sharon's opportunity cost of producing puzzles is it was previously. 30 From the previous analysis, you can determine that as Sharon increases her production of trains, her opportunity cost of producing one more train Initial PPF higher than A 20 Suppose Sharon buys a new tool that enables her to produce twice as many trains per hour as befo lower than 't affect her ability to produce New PPF puzzles. Use the green points (triangle symbol) to plot her new PPF on the previous graph. the same as PUZZLES Because she can now make more trains per hour, Sharon's opportunity cost of producing puzzles is it was previously. TRAINS Suppose Sharon is currently using combination D, producing one train per day. Her opportunity cost of producing a second train per day is per day. 1 puzzle Sharon is currently using combination C, producing two trains per day. Her opportunity cost of producing a third train per day is 2 puzzles per day. 14 puzzles ious analysis, you can determine that as Sharon increases her production of trains, her opportunity cost of producing one more train 16 puzzles