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On the following graph, use the blue points (circle symbol) to plot Shen's initial production possibilities frontier (PPF). 30 O 25 Initial PPF A 20

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On the following graph, use the blue points (circle symbol) to plot Shen's initial production possibilities frontier (PPF). 30 O 25 Initial PPF A 20 O New PPF O 15 DRUMS 10 O 5 0 0 1 2 3 4 5 6 7 8 BOATSSuppose Shen is currently using combination D, producing one boat per day. His opportunity cost of producing a second boat per day is 2drums V per day. Now, suppose Shen is currently using combination C, producing two boats per day. His opportunity cost of producing a third boat per day is 6drums v per day. From the previous analysis, you can determine that as Shen increases his production of boats, his opportunity cost of producing one more boat increases v . Suppose Shen 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 drums. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more boats per hour, Shen's opportunity cost of producing drums is higher than v it was previously

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