Based on the table below answer the following:  Combinations…

Questions

Bаsed оn the tаble belоw аnswer the fоllowing:  Combinations of sweaters and phones Points sweaters phones A 16 0 B 12 1 C 8 1 D 8 2 E 4 3 F 0 4 Draw (you must include the graph, describing it with words alone is not enough) a production possibilities frontier (PPF) using the data provided above. Put sweaters in the vertical axis and phones in the horizontal axis. Be sure to show all the points on the PPF. Now, answer the following: Which are the efficient points? Justify your answer! Which are the inefficient points? Justify your answer! Calculate the opportunity cost of an extra phone on segment AB, and on segment DE (i.e., how many sweaters you must give up to obtain an extra phone?). Show your work! What is your PPF's shape, bowed outward or straight line? Justify your answer! Show the effect of a microchip shortage for phones caused by the Covid-19 pandemic by drawing the new production possibilities frontier (PPF) on the graph from Part 1.