Specialization and production possibilities
Suppose China produces only trucks and tablets. The resources that are used in the production of these two goods are specialized—that is, some resources are more suitable for producing trucks than tablets, whereas others are more suitable for producing tablets than trucks.
The shape of China’s production possibilities frontier (PPF) should reflect the fact that as China produces more tablets and fewer trucks, the opportunity cost of producing each additional tablet selector 1
decreases
increases
remains constant
Based on the previous description, the trade-off China faces between producing tablets and trucks is best represented by
Graph 1? OR
Graph 2?