1 . Opportunity cost and production possibilities Ginny is a skilled toymaker who is able to produce both cars 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. Hours Producing Produced Choice (Cars) (Puzzles) (Cars) (Puzzles) A 8 0 4 0 B 6 N 11 C 4 2 16 D 2 6 1 19 E 8 0 20On the following graph, use the blue points (circle symbol) to plot Ginny's initial production possibilities curve (PPC). 30 Initial PPC 25 20 New PPC 15 PUZZLES PER DAY 10 5 0 0 2 3 5 6 CARS PER DAY 1 18.C Q Search Mostly cloudyst # 2 (Ch 02) 3 5 6 7 8 CARS PER DAY Suppose Ginny 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 Ginny 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 Ginny increases her production of cars, her opportunity cost of producing one more car Suppose Ginny buys a new tool that allows her to produce twice as many cars per hour as before but doesn't affect her ability to produce puzzles. Use the green points (triangle symbol) to plot her new PPC on the previous graph. Because she can now make more cars per hour, Ginny's opportunity cost of producing puzzles is it was previously. Grade It Now Save & Continue Continue without saving