Question

Suppose sweden produces only tablets and smartphones. The resources that are used in the production of these two goods are not specialized—that is, the same set of resources is equally useful in producing both smartphones and tablets. The shape of sweden's production possibilities frontier (ppf) should reflect the fact that as sweden produces more smartphones and fewer tablets, the opportunity cost of producing each additional smartphone

Answer 1

Answer: Straight line PPF, Opportunity cost is constant.

Explanation:

The PPF for Sweden is downward sloping straight line which depicts that the resources that are used in the production of these two goods are not specialized and the same set of resources is equally useful in producing both smartphones and tablets. Thus, Sweden's opportunity cost of producing more smartphones and fewer tablets should remain constant.