Hilary is a skilled toy maker who is able to produce both boats and kites. She has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of her time. Produced Hours Producing (Boats) (Kites) (Boats) (Kites) Choice 0 4 0 8 A 8 3 2 6 B 13 2 4 4 C 15 1 6 2 D 16 0 E st + On the following graph, use the blue points (circle symbol) to plot Hilary's initial production possibilities frontier (PPF) ? 25 Initial PPF 20 New PPF 15 10 5 0 0 1 2 3 5 6 7 8 BOATS KITES 30 Suppose Hilary is currently using combination D, producing one boat per day. Her opportunity cost of producing a second boat per day is per day a third boat per day is Now, suppose Hilary is currently using combination C, producing two boats per day. Her opportunity cost of producing per day From the previous analysis, you can determine that as Hilary increases her production of boats, her opportunity cost of producing one more boat Suppose Hilary buys a new tool that enables her to produce twice as many boats per hour as before, but it doesn't affect her ability to produce kites. Use the green points (triangle symbol) to plot her new PPF on the previous graph. it was previously Because she can now make more boats per hour, Hilary's opportunity cost of producing kites is

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