Ryan Linares
10 July 2021
12189
This short writing assignment shows a graph that depicts a bowed-out production possibilities
frontier between tablets and smartphones. The opportunity cost of an additional tablet from point
A to B is 2 smartphones which is found by doing the equation units lost divided by units gained.
The opportunity cost of an additional tablet from point B to C is 4 smartphones. The opportunity
cost of an additional smartphone from point C to B is 0.25 tablets. It is not possible to determine
the highest opportunity cost at a single point because on a bowed-out production possibility
frontier opportunity cost is not constant so it is calculated while moving from one point to
another along the production possibility frontier it cannot be calculated at one point. Points A, B,
C, D, and E are all efficient because they lie on the production possibilities frontier which means
they use all their resources as efficiently as possible given the scarcity of those resources.