1. Specialization and production possibilities

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(decreases, increases, or remains constant).

Does this decrease, increase or remain constantjQuery2240010580179961803493_1584224927179??

The following graphs show two possible PPFs for Sweden's economy: a straight-line PPF ( PPF1 ) and a bowed-out PPF ( PPF2 ). Graph 1 Graph 2 PPF 1 PPF 2 TABLETS TABLETS SMARTPHONES SMARTPHONES