(Solved): Suppose Edison is currenty using combination D, producing one knit cap per day. His opportunity c ...

Suppose Edison is currenty using combination D, producing one knit cap per day. His opportunity cost of producing a second knit cap per day is per day Now, suppose Edison is currently using combination ${\mathrm{C}}_f$ producing two knit caps per day. His oppertunity cost of producing a third knit cap per day is per day. Suppose Edison is currently using combination D, producing one knit cap per day. His opportunity cost of producing a second knit cap per day is per day. Now, suppose Edison is currently using combination C, producing two knit caps per day. His opportunity cost of producing a third knit cap per day is per day. From the previous analysis, you can determine that as Edison increases his production of knit caps, his opportunity cost of producing one more knit cap Suppose Edison buys a new tool that enables him to produce twice as many knit caps per hour as before, but it doesn't affect his abvilty to produce pillows. Use the green points (triangle symbol) to plot his new PPF on the previous graph. Because he can now make more knit caps per hour, Edison's opportunity cost of producing pillows is it was previously.