Lorenzo is a skilled toy maker who is able to produce both boats 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 (Boats) (Puzzles) (Boats) (Puzzles) A 8 O 4 O B 6 2 3 B C 4 4 2 13 D 2 6 1 15 E 0 8 D 16 On the following graph, use the blue points ( circle symbol) to plot Lorenzo's initial production possibilities frontier (PPF). -0- 25 Initial PPF * 21] New PPF 15 PUZZLES 1|] Suppose Lorenzo is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is V per day. Now, suppose Lorenzo is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day is V per day. From the previous analysis, you can determine that as Lorenzo increases his production of boats, his opportunity cost of producing one more boat V Suppose Lorenzo buys a new tool that enables him to produce twice as many boats 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 boats per hour, Lorenzo's opportunity cost of producing puzzles is V it was previously