Question

The shape of China's production possibilities frontier (PPF) should reflect the fact that as China produces more smartphones and fewer tablets, the opportunity cost of producing each additional smartphone ------

Answer 1

Answer:

Remain same

Explanation:

In this situation, China makes tablets and smartphones only. The equipment used to manufacture these two products is nearly the same, the same collection of tools is equally useful in manufacturing both smartphones and tablets. So there is the constant opportunity cost of both commodities.

Resources are similarly appropriate for the manufacturing of two varied goods at a constant opportunity cost.

Therefore, the opportunity costs for additional smartphone remains the same.