17. Opportunity cost and production possibilities Caroline is a talented artist who sells hand-crafted goods on her website. Caroline currently crafts and sells both picture frames and embroidered sweaters. She spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of her time is spent on each good. Hours Crafting Produced Choice (Picture frames) (Embroidered sweaters) (Picture frames) (Embroidered sweaters) A 8 0 4 C B 6 N W 8 C N 13 D IN 6 15 m O 8 O 16 On the following graph, use the blue points (circle symbol) to plot Caroline's initial production possibilities frontier (PPF). 30 O 25 Initial PPF 20 New PPF IDERED SWEATERS 15Suppose Caroline 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 Caroline 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 Caroline increases her production of picture frames, her opportunity cost of producing one more picture frame Suppose Caroline 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 embroidered sweaters. 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, Caroline's opportunity cost of producing embroidered sweaters is it was previously