(Solved): Opportunity cost and production possibilities Jake is a talented artist who sells hand-crafted goods ...

Opportunity cost and production possibilities Jake is a talented artist who sells hand-crafted goods online. Jake currently crafts and sells both dog collars and wreaths. He spends 8 hours a day working on these items. The following table gives different daily output scenarios depending on how much of his time is spent on each good. \table[[,Hours Crafting,Produced],[Choice,(Dog collars),(Wreaths),(Dog collars),(Wreaths)],[A,8,0,4,0],[B,6,2,3,8],[C,4,4,2,14],[D,2,6,1,16],[E,0,8,0,17]] On the following graph, use the blue points (circle symbol) to plot Jake's initial production possibilities frontier (PPF).

Suppose Jake is currently using combination

, producing one dog collar per day. His opportunity cost of producing a second dog collar per day is

per day. Now, suppose Jake is currently using combination

producing two dog collars per day. His opportunity cost of producing a third dog collar per day is

per day. From the previous analysis, you can determine that as Jake increases his production of dog collars, his opporzunity cost of producing one more dos calla

Suppose lake buys a new tool that enables him to produce wwice as many dog collars per hour as before, but it doesn't affect his abllity to produce wreaths. Use the graen points (triangle symbol) to plot his new PPF on the prevlous graph. Because he can now make more dog collars per howr, jake's opportunity cost of producing wreaths is

it was previously