Question: Suppose Kyoko is currently using combination D , producing one picture frame per day. Her opportunity cost of producing a second picture frame per day
Suppose Kyoko is currently using combination D producing one picture frame per day. Her opportunity cost of producing a second picture frame per day is per day.
Now, suppose Kyoko is currently using combination C producing two picture frames per day. Her opportunity cost of producing a third picture frame per day is per day.
From the previous analysis, you can determine that as Kyoko increases her production of picture frames, her opportunity cost of producing one more picture frame
Suppose Kyoko buys a new tool that enables her to produce twice as many picture frames per hour as before, but it doesn't affect her ability to produce cutting boards. Use the green points triangle symbol to plot her new PPF on the previous graph.
Because she can now make more picture frames per hour, Kyoko's opportunity cost of producing cutting boards is it was previously.
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