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Hours Producing Produced Choice (Trucks) (Puzzles) (Trucks) (Puzzles) A 8 o 4 o B 6 2 3 10 c 4 4 2 14 D 2

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Hours Producing Produced Choice (Trucks) (Puzzles) (Trucks) (Puzzles) A 8 o 4 o B 6 2 3 10 c 4 4 2 14 D 2 6 1 17 E 0 8 0 18 On the following graph, use the blue points (circle symbol) to plot Clancy's initial production possibilities frontier (PPF). \fSuppose Clancy is currently using combination D, producing one truck per day. His opportunity cost of producing a second truck per day is v per day. Now, suppose Clancy is currently using combination C, producing two trucks per day. His opportunity cost of producing a third truck per day is v per day. From the previous analysis, you can determine that as Clancy increases his production of trucks, his opportunity cost of producing one more truck V Suppose Clancy buys a new tool that enables him to produce twice as many trucks 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 trucks per hour, Clancy's opportunity cost of producing puzzles is V it was previously

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