5. Opportunity cost and production possibilities Musashi is a talented artist who sells hand-crafted goods on his website. Musashi currently crafts and sells both tea towels and baskets. He spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on each good. Hours Crafting Produced Choice (Tea towels) (Baskets) (Tea towels) (Baskets) A 8 0 4 0 B 6 2 3 8 C 4 4 2 14 D 2 6 1 16 O CO O 17 On the following graph, use the blue points (circle symbol) to plot Musashi's initial production possibilities frontier (PPF).\fSuppose Musashi is currently using combination D, producing one tea towel per day. His opportunity cost of producing a second tea towel per day is per day. 1 basket Musashi is currently using combination C, producing two tea towels per day. His opportunity cost of producing a third tea towel per day 2 baskets per day. 14 baskets ous analysis, you can determine that as Musashi increases his production of tea towels, his opportunity cost of producing one more tea 16 baskets Suppose Musashi buys a new tool that enables him to produce twice as many tea towels per hour as before, but it doesn't affect his ability to produce baskets. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more tea towels per hour, Musashi's opportunity cost of producing baskets is it was previously.Now, suppose Musashi is currently using combination C, producing two tea towels per day. His opportunity cost of producing a third tea towel per day is Y per day. Fr 1 basket us analysis, you can determine that as Musashi increases his production of tea towels, his opportunity cost of producing one more tea to 6 baskets V 8 baskets i buys a new tool that enables him to produce twice as many tea towels per hour as before, but it doesn't affect his ability to produce 14 baskets - green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more tea towels per hour, Musashi's opportunity cost of producing baskets is 7 it was previously. From the previous analysis, you can determine that as Musashi increases his production of tea towels, his opportunity cost of producing one more tea towel decreases Suppo ew tool that enables him to produce twice as many tea towels per hour as before, but it doesn't affect his ability to produce increases baske ints (triangle symbol) to plot his new PPF on the previous graph. remains constant Because ne can now make more tea towels per hour, Musashi's opportunity cost of producing baskets is it was previously. Grade It Now Save & ContinueSuppose Musashi is currently using combination D, producing one tea towel per day. His opportunity cost of producing a second tea towel per day is Y per day. Now, suppose Musashi is currently using combination C, producing two tea towels per day. His opportunity cost of producing a third tea towel per day is V per day. From the previous analysis, you can determine that as Musashi increases his production of tea towels, his opportunity cost of producing one more tea higher than Suppose Musashi buys a new tool that enables him to produce twice as many tea towels per hour as be ' n't affect his abiiity to produce baskets. Use the green points (triangle symbof) to plot his new PPF on the previous graph, the same as towel Y . Because he can now make more tea towels per hour, Musashi's opportunity cost of producing baskets is V it was previously. Continue without saving