Attempts. II:I:' Keep the Highest 0 / 5 17. Opportunity cost and production possibilities Sharon is a talented artist who sells hand-crafted goods on her website. Sharon currently crafts and sells both tea towels and pillows. 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 (Tea towels) (Pillows) (Tea towels) (Pillows) A 8 0 4 0 B 6 2 ] 8 C 4 4 2 14 D 2 6 1 16 E 0 8 0 17 On the following graph, use the blue points (circle symbal) to plat Sharon's initial production possibilities frontier (PPF). @ an O %1 Initial PPF A 20 W Mew PPF g o 15 T 10 5 (1] = o 1 2 3 4 5 a8 7 8 TEATOWELS Suppose Sharon is currently using combination D, producing one tea towel per day. Her opportunity cost of producing a second tea towel per day is w per day. Mow, suppose Sharon is currently using combination C, producing two tea towels per day. Her opportunity cost of producing a third tea towel per day is W per day. From the previous analysis, you can determine that as Sharon increases her production of tea towels, her opportunity cost of producing one maore tea towel v o, Suppose Sharon buys a new tool that enables her to produce twice as many tea towels per hour as before, but it doesn't affect her ability to produce pillows. Use the green points (triangle symbol) to plot her new PPF on the previous graph. Because she can now make more tea towels per hour, Sharon's opportunity cost of producing pillows is w it was previously