Attempts Keep the Highest / 5 4. Opportunity cost and production possibilities Hubert is a talented artist who sells hand-crafted goods on his website. Hubert currently crafts and sells both knit caps 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 (Knit caps) (Baskets) (Knit caps) (Baskets) A 8 0 4 0 B 11 C 4 4 16 D 2 6 19 E O 8 0 20O 25 Initial PPF 20 New PPF 5 BASKETS 10 3 5 KNIT CAPS Suppose Hubert is currently using combination D, producing one knit cap per day. His opportunity cost of producing a second knit cap per day is per day. Now, suppose Hubert is currently using combination C, producing two knit caps per day. His opportunity cost of producing a third knit cap per day is per day. From the previous analysis, you can determine that as Hubert increases his production of knit caps, his opportunity cost of producing one more knit cap Suppose Hubert buys a new tool that enables him to produce twice as many knit caps 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 knit caps per hour, Hubert's opportunity cost of producing baskets is it was previously