Carlos is a skilled toy maker who is able to produce both cars and kites. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time.

Choice	Hours Producing	Produced
(Cars)	(Kites)	(Cars)	(Kites)
A	8	0	4	0
B	6	2	3	11
C	4	4	2	16
D	2	6	1	19
E	0	8	0	20

On the following graph, use the blue points (circle symbol) to plot Carlos's initial production possibilities frontier (PPF).

Initial PPFNew PPF012345678302520151050KITESCARS

Suppose Carlos is currently using combination D, producing one car per day. His opportunity cost of producing a second car per day is per day.

Now, suppose Carlos is currently using combination C, producing two cars per day. His opportunity cost of producing a third car per day is per day.

From the previous analysis, you can determine that as Carlos increases his production of cars, his opportunity cost of producing one more car .

Suppose Carlos buys a new tool that enables him to produce twice as many cars per hour as before, but it doesn't affect his ability to produce kites. Use the green points (triangle symbol) to plot his new PPF on the previous graph.

Because he can now make more cars per hour, Carlos's opportunity cost of producing kites is it was previously.