(Figure: Gizmos and Gadgets) Based on the graph, we see that the opportunity cost of 1 gizmo is

Question

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According to the graph, the opportunity cost of 1 gizmo is 2 gadgets. This means that if you produce 1 gizmo, you are giving up the opportunity to produce 2 gadgets. Therefore, the best choice would be to produce gizmos until the opportunity cost of producing one more gizmo is equal to 2 gadgets. After that point, it would be more efficient to produce gadgets instead. The point where the opportunity cost is 2 gadgets is where the production possibilities curve intersects the gadget axis at 50,000 gadgets. So, the best choice is to produce gizmos up to a quantity of 50,000 and then produce gadgets beyond that point.

(Figure: Gizmos and Gadgets) Based on the Graph, We See