Suppose the United Kingdom produces only cars and smartphones. The resources that are used in the production of these two goods are specializedthat is, some resources are more suitable for producing cars than smartphones, whereas others are more suitable for producing smartphones than cars.

The shape of the United Kingdom's production possibilities frontier (PPF) should reflect the fact that as the United Kingdom produces more smartphones and fewer cars, the opportunity cost of producing each additional smartphone A. decreases B. increases C. remains constant.

The following graphs show two possible PPFs for the United Kingdom's economy: a straight-line PPF (PPF1) and a bowed-out PPF (PPF2).

Based on the previous description, the trade-off the United Kingdom faces between producing smartphones and cars is best represented by A. Graph 1 or B. Graph 2.