Sharon is a skilled toy maker who is able to produce both trucks 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.
Choice Hours Producing Produced
(Trucks) (Puzzles) (Trucks) (Puzzles)
A 8 0 4 0
B 6 2 3 11
C 4 4 2 16
D 2 6 1 19
E 0 8 0 20
Required:
1. Suppose Sharon is currently using combination D, producing one truck per day. Her opportunity cost of producing a second truck per day is _ per day.2. Now, suppose Sharon is currently using combination C, producing two trucks per day. Her opportunity cost of producing a third truck per day is_ per day.

From point D ( 1 truck) to point C ( 2nd truck ), opportunity cost in terms of puzzles sacrifised is 19 - 16 = 3. So, opportunity cost is 1T : 3P
From point C ( 2 trucks ) to point D (3rd truck ), opportunity cost in terms of puzzles sacrifised is 16 - 11 = 5. So, opportunity cost is 1T : 5P

francocanacari francocanacari · Answer 2 · 2022-01-18T14:49:15+01:00

Sharon's opportunity cost of producing a second truck per day is 3 puzzles, and that of producing a third truck per day is 5 puzzles.

1) Since Sharon is currently using combination D, producing one truck per day. Her opportunity cost of producing a second truck per day is 3 puzzles per day.

This is so because by producing 2 trucks, she has the capacity to produce 16 puzzles, while by producing just 1 truck, she can produce 19 puzzles (19-16 = 3).

2) Given that Sharon is currently using C, producing two trucks per day. Her opportunity cost of producing a third truck per day is 5 puzzles per day.

This is so because by producing 3 trucks, she has the capacity to produce 11 puzzles, while by producing 2 trucks, she can produce 16 puzzles (16-11 = 5).

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