{"id":220211,"date":"2025-05-28T03:41:44","date_gmt":"2025-05-28T03:41:44","guid":{"rendered":"https:\/\/learnexams.com\/blog\/?p=220211"},"modified":"2025-05-28T03:41:46","modified_gmt":"2025-05-28T03:41:46","slug":"opportunity-cost-and-production-possibilities-juarita-is-a-skil-ed-tcy-maker-who-is-able-to-produce-both-cars-and-d","status":"publish","type":"post","link":"https:\/\/www.learnexams.com\/blog\/2025\/05\/28\/opportunity-cost-and-production-possibilities-juarita-is-a-skil-ed-tcy-maker-who-is-able-to-produce-both-cars-and-d\/","title":{"rendered":"Opportunity cost and production possibilities Juarita is a skil ed tcy maker who is able to produce both cars and d"},"content":{"rendered":"\n
HW.A:2.1: Chapter 2- Aplia Homework Back to Assignment Attempts: Average:5 5. Opportunity cost and production possibilities Juarita is a skil ed tcy maker who is able to produce both cars and d ?ms. Sne has s ncurs a day to roc uce toys. The following table shows the daily cutput resultung from vanous possible combinations of her time. Hours Producing Produced Choice (Cars) (Drms (Cars) (Drums) 3 14 16 17 On the following graph, use the blue points (circle symbol) to plot Juanita’s initial production possibilities frontier (PPF) 30 25 Initial PPF 20 New PPF 15 10 CARS Suppose Juanita is currently using combination D, producing one car per day. Her opportunity cost of producing a second car per day is per day Suppose Juanita is currently using combination D, producing one car per day. Her opportunity cost of producing a second car per day is per day. Now, suppose Juanita is currently using combination C, producing two cars per day. Her opportunity cost of producing a third car per day is per day From the previous analysis, you can determine that as Juanita increases her production of cars, her opportunity cost of producing one more car Suppose Juanita buys a new tool that enables her to produce twice as many cars 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 cars per hour, Juanita’s opportunity cost of producing drums is it was previously<\/p>\n\n\n\n
T he Correct Answer and Explanation is :<\/mark><\/strong><\/p>\n\n\n\n
Let\u2019s analyze Juanita\u2019s Production Possibilities Frontier (PPF) scenario step by step. Based on the details provided, the data needs to be translated into the opportunity cost framework.<\/p>\n\n\n\n
\n\n\n\n
1. Understanding the PPF Table<\/strong><\/h3>\n\n\n\n
From the table provided, here\u2019s how her production combinations are structured:<\/p>\n\n\n\n
Assuming Juanita can produce 2 drums per hour<\/strong>, this gives the outputs above (17\u00d72 = 34, etc.). Also, she seems to produce 1 car per hour<\/strong>.<\/p>\n\n\n\n\n\n\n\n
(a) From combination D (1 car per day):<\/strong><\/p>\n\n\n\n
At point D: 1 car, 32 drums At point C: 2 cars, 30 drums<\/p>\n\n\n\n
\ud83d\udc49 To produce 1 more car (from 1 to 2), Juanita gives up 32 – 30 = 2 drums<\/strong>. \ud83d\udccc Opportunity cost of the 2nd car = 2 drums<\/strong><\/p>\n\n\n\n\n\n\n\n
(b) From combination C (2 cars per day):<\/strong><\/p>\n\n\n\n
At point C: 2 cars, 30 drums At point B: 3 cars, 28 drums<\/p>\n\n\n\n
\ud83d\udc49 To produce 1 more car (from 2 to 3), she gives up 30 – 28 = 2 drums<\/strong>. \ud83d\udccc Opportunity cost of the 3rd car = 2 drums<\/strong><\/p>\n\n\n\n\n\n\n\n
3. Pattern of Opportunity Cost<\/strong><\/h3>\n\n\n\n
Since the opportunity cost (in drums) remains constant (2 drums per car)<\/strong> as car production increases, we conclude:<\/p>\n\n\n\n
\ud83d\udccc Opportunity cost is constant<\/strong> \ud83d\udccc This means the PPF is linear<\/strong>, not bowed.<\/p>\n\n\n\n\n\n\n\n
4. Effect of New Tool (Increased Car Productivity)<\/strong><\/h3>\n\n\n\n
Suppose Juanita can now produce 2 cars per hour<\/strong> (twice as many). Her 3 hours spent on cars (maximum) now give her 6 cars instead of 3. Her ability to produce drums remains unchanged.<\/p>\n\n\n\n
New PPF Points (assuming same time limit of 17 hours):<\/strong><\/p>\n\n\n\n
5. New Opportunity Cost of Drums<\/strong><\/h3>\n\n\n\n
Before, 1 hour used on drums = 2 drums Now, if that hour is used on cars = 2 cars<\/p>\n\n\n\n
\ud83d\udc49 1 hour of work can either make 2 cars<\/strong> or 2 drums<\/strong><\/p>\n\n\n\n
So, opportunity cost of 1 drum = 1 car<\/strong> (previously, it was 0.5 car)<\/p>\n\n\n\n
\ud83d\udccc Opportunity cost of drums has increased<\/strong> \ud83d\udccc Juanita\u2019s new comparative advantage is more specialized in cars<\/strong><\/p>\n\n\n\n\n\n\n\n
\u2705 Final Answers<\/strong><\/h3>\n\n\n\n
\n
Opportunity cost of the 2nd car = 2 drums<\/strong><\/li>\n\n\n\n
Opportunity cost of the 3rd car = 2 drums<\/strong><\/li>\n\n\n\n
As Juanita increases car production, the opportunity cost stays constant<\/strong><\/li>\n\n\n\n
After the new tool: opportunity cost of drums is higher than before<\/strong><\/li>\n<\/ul>\n\n\n\n\n\n\n\n<\/figure>\n","protected":false},"excerpt":{"rendered":"
HW.A:2.1: Chapter 2- Aplia Homework Back to Assignment Attempts: Average:5 5. Opportunity cost and production possibilities Juarita is a skil ed tcy maker who is able to produce both cars and d ?ms. Sne has s ncurs a day to roc uce toys. The following table shows the daily cutput resultung from vanous possible combinations […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[25],"tags":[],"class_list":["post-220211","post","type-post","status-publish","format-standard","hentry","category-exams-certification"],"_links":{"self":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/220211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/comments?post=220211"}],"version-history":[{"count":0,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/posts\/220211\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/media?parent=220211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/categories?post=220211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.learnexams.com\/blog\/wp-json\/wp\/v2\/tags?post=220211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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