Please give a DETAILED solution with an explanation with a TYPED answer. For the graph make sure it is readable, visible, and LABEL each the x and y points/coordinates as well for both lines. For the last part, pick the best bold options for each question. Please ANSWER the question fully!!!
Suppose Hilary is currently using combination D, producing one truck per day. Her opportunity cost of producing a second truck per day is 15-13 = 2 kites per day.
Now, suppose Hilary is currently using combination C, producing two trucks per day. Her opportunity cost of producing a third truck per day is 13-8 = 5 kites per day.
From the previous analysis, you can determine that as Hilary increases her production of trucks, her opportunity cost of producing one more truck increases (as before it was 2 kites, but now its 5 kites)
Suppose Hilary buys a new tool that enables her to produce twice as many trucks per hour as before, but it doesn't affect her ability to produce kites. Use the green points (triangle symbol) to plot her new PPF on the previous graph.
Because she can now make more trucks per hour, Hilary's opportunity cost of producing kites is higher than it was previously.
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