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5. Opportunity cost and production possibilities Van is a skilled toy maker who is able to produce both cars and puzzles. He has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of his time. Hours Producing Produced Choice (Cars) (Puzzles) (Cars) (Puzzles) A 4 0 B N W 11 C 15 NA 18 F 19 On the following graph, use the blue points (circle symbol) to plot Van's initial production possibility frontier (PPF). O 25 Initial PPF 20 O New PPF PUZZLES 15 10 3 7 CARSSuppose Van 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 Van 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 Van increases his production of cars, his opportunity cost of producing one more car Suppose Van 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 puzzles. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more cars per hour, Van's opportunity cost of producing puzzles is it was previously