Week 2 Opportunity cost and production possibilities frontier Jake is a skilled toy maker who is able to produce both cars and bikes. He has 3 hours a day to produce toys. The following table shows the daily output resulting from 1various possible combinations of his time. Hours Producing Produced Choice {cots} (Bikes) (cars) {Bikes} A 3 U 4 U B 5 2 3 10 C 4 4 2 15 D 2 5 1 19 E D 8 Cl 20 1. Suppose Jake is currentiy using combination D, producing one car per day. His opportunity cost of producing a second car per day is per day. 2. Now, suppose Jake is currently using combination C, producing two cars per day. His opportunity cost of producing a third car per day is per day. 3. From the previous analysis, you can determine that as Jake increases his production of cars, his opportunity cost of producing one more car 4. What does the PPF look iike? A line or a curve