Consider the following production possibilities frontier (PPF) for iPhones and iPads.

(a) State the production levels of iPhones and iPads if this economy produces at Point b on its PPF. (2 marks)

(b) What is the opportunity cost of iPads in terms of iPhones if the economy moves production from Point b to Point c? (3 marks)

(c) Explain why this economy cannot produce 140 iPhones and 100 iPads. What would have to happen for this economy to produce this combination of iPhones and iPads? (3 marks)

iPhones 150 140 130 120 110 a 20 b 40 60 C 80 d e 100 iPads