Poornima is a skilled toy maker who is able to produce both trains and kites. She has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of her time. 1. On the following graph, plot Poornima's initial production possibilities frontier (PPF). 2. Suppose Poornima is currently using combination D, producing one train per day. Her opportunity cost of producing a second train per day is _____ per day. 3. Now, suppose Poornima is currently using combination C, producing two trains per day. Her opportunity cost of producing a third train per day is ____ per day. From the previous analysis, you can determine that as Poornima increases her production of trains, her opportunity cost of producing one more train _____ (increases, decreases, stays the same) 4. Suppose Poornima buys a new tool that enables her to produce twice as many trains per hour as before, but it doesn't affect her ability to produce kites. Use the graph above tp plot her new PPF on the previous graph. 5. Because she can now make more trains per hour, Poornima's opportunity cost of producing kites is _____ (higher, lower or the same) it was previously. Produced Choice Hours Producing (Trains) (Kites) 8 0 - 6 2 4 4 2 6 0 8 (Trains) 4 3 2 1 0 0 0 AND 1 (Kites) 0 11 15 18 18 19 D E