Look at the following production possibilities table for smartphones and tablets. The table shows the maximum combination of smartphones and tablets of corn that can be produced, when all resources are fully employed. Production Possibilities
Good A B C D E Based on the above information,

Question

Look at the following production possibilities table for smartphones and tablets. The table shows the maximum combination of smartphones and tablets of corn that can be produced, when all resources are fully employed. Production Possibilities
Good A B C D E  Based on the above information,

Quizplus · Accepted Answer

The production possibilities table shows a negative relationship between smartphones and tablets, indicating that resources are not equally efficient at producing both goods. As more resources are allocated towards producing smartphones, the opportunity cost of producing tablets increases. The opportunity cost of producing 40 instead of 30 smartphones is 30 tablets, which means that in order to produce 40 smartphones, the economy has to give up 30 tablets that could have been produced instead. Therefore, the best choice would be to produce 40 smartphones and 60 tablets.

Look at the Following Production Possibilities Table for Smartphones and Tablets