(Solved): 4. Opportunity cost and production possibilities Darnell is a talented artist who sells hand-crafte ...

4. Opportunity cost and production possibilities Darnell is a talented artist who sells hand-crafted goods on his website. Darnell currently crafts and sells both knit caps and baskets. 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 good. On the following graph, use the blue points (circle symbol) to nlat narnaite. stion possibulities frontier (PPF). Suppose Darnell is currently using combination D, producing one knit cap per day, His opportunity cost of producing a second krit cap per day is per day. Now, suppose Darnell is currently using combination C, producing two knit caps per day, His opportunity cost of aroducing a third knit cap per day is per day. From the previous analysis, you can determine that as Darnell increases his production of knit caps, his oppertunity cost of producing one inare hnit. cap Suppose Darnell buys a new tool that enables him to produce twice os many kont caps per hour as butere, but ic doesn't affect his abuitr to procute baskets. Use the green pointe (triangle symbol) to plot his new ppf on the orevidus graph. Because he can now make more knit caps per hour. Darnells opportunity cost of producing baskets is