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Susan is a skilled toy maker who is able to produce both cars and drums. She has 8 hours a day to produce toys. The

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Susan is a skilled toy maker who is able to produce both cars and drums. She has 8 hours a day to produce toys. The following table shows the daily output resulting from various possible combinations of her time.

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Hours Producing Produced Choice (Cars) (Drums) (Cars) (Drums) A 8 O 4 O 6 W N 12 A N A 17 N 19 O 8 0 20 On the following graph, use the blue points (circle symbol) to plot Susan's initial production possibilities frontier 30 O 25 Initial PPF 20 New PPF 15 DRUMS 10 O 2 3 5 6 7 8 CARSSuppose Susan is currently using combination D, producing one car per day. Her opportunity cost of producing a second car per day is v per day. Now, suppose Susan is currently using combination C, producing two cars per day. Her opportunity cost of producing a third car per day is v per day. From the previous analysis, you can determine that as Susan increases her production of cars, her opportunity cost of producing one more car 7 Suppose Susan buys a new tool that enables her to produce twice as many cars per hour as before, but it doesn't affect her ability to produce drums. Use the green paints (triangle symbol) to plot her new PPF on the previous graph. Because she can now make more cars per hour, Susan's opportunity cost of producing drums is v it was previously

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