7. Opportunity cost and production possibilities

Beth is a skilled toymaker 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.

Choice	Hours Producing		Produced
	(Boats)	(Kites)	(Boats)	(Kites)
A	8	0	4	0
B	6	2	3	10
C	4	4	2	16
D	2	6	1	18
E	0	8	0	19

On the following graph, use the blue points (circle symbol) to plot Beth's initial production possibilities curve (PPC).

Suppose Beth is currently using combination D, producing one boat per day. Her opportunity cost of producing a second boat per day is    per day.

Now, suppose Beth is currently using combination C, producing two boats per day. Her opportunity cost of producing a third boat per day is    per day.

From the previous analysis, you can determine that as Beth increases her production of boats, her opportunity cost of producing one more boat    .

Suppose Beth buys a new tool that allows her to produce twice as many boats per hour as before but doesn't affect her ability to produce kites. Use the green points (triangle symbol) to plot her new PPC on the previous graph.

Because she can now make more boats per hour, Beth's opportunity cost of producing kites is    it was previously.