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(Solved): 2. suppose Dmitri is currently using combination D, producing one train per day. His opportunity cos ...
2. suppose Dmitri is currently using combination D, producing one train per day. His opportunity cost of producing a second train per day is (1 drums, 2 drums, 13 drums, or 15 drums?) per day.
3. Now, suppose Dmitri is currently using combination C, producing two trains per day. His opportunity cost of producing a third train per day is (1 drum, 5 drums, 8 drums, or 13 drums?) per day.
4. From the previous analysis, you can determine that as Dmitri increases his production of trains, his opportunity cost of producing one more train (decreases, increases, or remains constant?)
5. Suppose Dmitri buys a new tool that enables him to produce twice as many trains per hour as before, but it doesnt affect his ability to produce drums. Use the green points (triangle symbol) to plot his new PPF on the previous graph.
6. Because he can now make more trains per hour, Dmitri's opportunity cost of producing drums is (higher than, lower than, the same as?) it was previously.
5. Opportunity cost and production possibilities Dmitri is a skilled toy maker who is able to produce both trains and drums, He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. On the following graph, use the blue points (cincie symbol) to plot Dmitri's initial production possibweties frontier (PPP).
Expert Answer
First part: Let us see the Initial PPF below. For this we have used the number of units produced (and not the number of hours put in). Part 2: For increasing trains from 1 to 2 units, he will have to move from combination D to combination C. In this