1?. Opportunity cost and production possibilities Jacques is a talented artist who sells handcrafted goods on his website. Jacques currently crafts and sells both crochet hats and cutting boa rds. He spends 8 hours a day working on crafts. The following table gives different daily output scenarios depending on how much of his time is spent on each go o d. Hours Crafting Produced Choice {' Crochet hats) {' Cutting boards) {' Crochet hats) {' Cutting boards) A 8 0 4 0 B 6 2 3 8 C 4 4 2 14 D 2 6 1 1 6 E 0 8 0 1 7 On the following graph, use the blue points (circle symbol) to plot Jacques's initial production possibilities frontier (PPF). 30 O 25 Initial PPF A 20 New PPF 15 CUTTING BOARDS 10 5 0 0 1 2 3 4 5 6 7 8 CROCHET HATSSuppose Jacques is currently using combination D, producing one crochet hat per day. His opportunity cost of producing a second crochet hat per day is V per day. Now, suppose Jacques is currently using combination C, producing two crochet hats per day. His opportunity cost of producing a third crochet hat per day is V per day. From the previous analysis, you can determine that as Jacques increases his production of crochet hats, his opportunity cost of producing one more crochet hat V . Suppose Jacques buys a new tool that enabies him to produce tWice as many crochet hats per hour as before, but it doesn't affect his abiiity to produce cutting boards. Use the green points (triangle symbol) to pilot his new PPF on the previous graph. Because he can now make more crochet hats per hour, Jacques's opportunity cost of producing cutting boards is 7 it was previously