On the following graph, use the blue points (circle symbol) to plot Valerie's initial production possibilities frontier (PPF). '\\ kip,\" 30 -- O 25 " Initial PPF A 20 w New PPF E O 15 _I e D. 10 5 __ 0 1 2 3 4 5 6 7 8 KNIT CAPS Suppose Valerie is currently using combination D, producing one knit cap per day. Her opportunity cost of producing a second knit cap per day is V per day. Now, suppose Valerie is currently using combination C, producing two knit caps per day. Her opportunity cost of producing a third knit cap per day is V per day. From the previous analysis, you can determine that as Valerie increases her production of knit caps, her opportunity cost of producing one more knit cap V . Suppose Valerie buys a new tool that enables her to produce twice as many knit caps per hour as before, but it doesn 't affect her ability to produce pillows. Use the green points (triangle symbol) to plot her new PPF on the previous graph. Because she can now make more knit caps per hour, Valerie's opportunity cost of producing pillows is V it was previously. 17. Opportunity cost and production possibilities Valerie is a talented artist who sells hand-crafted goods on her website. Valerie currently crafts and sells both knit caps and pillows. She spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of her time is spent on each good. Hours Crafting Produced Choice ( Knit caps) (Pillows) (Knit caps) (Pillows) A B 0 4 0 B 6 2 3 11 c 4 4 2 15 D 2 5 1 19 E o s o 20