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Consider the following production possibilities frontier (PPF) for iPhones and iPads. iPhones a 150- b 140- C 130- 120- 110- e 20 40 60 80
Consider the following production possibilities frontier (PPF) for iPhones and iPads. iPhones a 150- b 140- C 130- 120- 110- e 20 40 60 80 100 iPads (a) State the production levels of iphones and iPads if this economy produces at Point c on its PPF. (2 marks) (b) What is the opportunity cost per ipad if the economy moves production from Point c to Point d? (3 marks) (c) Without doing any calculations, would the opportunity cost in moving from Point d to Point e be higher or lower than the opportunity cost you calculated in Part (b)? Explain your answer. (3 marks) (Approximate numbers read off the chart are ok.)
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