1.The chart below represents the production possibilities for a company that produces ereaders and tablets.(5 marks)

a.Create a properly labeled graph representing the company's combination of choices for these two products.(2 marks)

b.Using the letter 'U' indicate on the graph unattainable combinations.(1 mark)

c.Using the letter 'A', indicate on the graph the attainable but inefficient.(1 mark)

d.Using the letter 'F' indicate the combinations that are both attainable and efficient.(1 mark)

Production Possibilities Curve

Tablets EReaders

0 2,000,000

120,000 1,800,000

195,000 1,400,000

260,000 800,000

300,000 0