2 Read the following scenario and answer the questions that follow.Scenario 1The production possibilities curve indicates the combinations of any two goods or services that areattainable when the community's resources are fully and efficiently employed. The productionpossibilities curve further illustrates scarcity, choice, and opportunity cost.An economics lecturer at STADIO specialises in the production of two products, namely explainerslides and explainer videos. The production of explainer slides, according to the lecturer, is regardedas labour intensive as opposed to the production of explainer videos. The lecturer explains that theexplainer videos are highly capital intensive due to the equipment and software required to producea video.Consider the following graph, which illustrates the quantity of explainer slides and explainer videosproduced by the lecturer.50B4742D35E4.Explainer VideosThe production possibilities curve (PPC) below shows the combinations of explainer slides andexplainer videos attainable when the resources of the lecturer are fully and efficiently employed.For scenario 1, answer the following questions:Given your understanding on the production possibilities curve, complete the specifiedproduction possibilities for the lecturer in the table below.4.1.PossibilityADEFExplainer SlidesExplainer Videos504.2.Discuss how the production possibilities curve illustrates scarcity, efficiency, andinefficiency in terms of resource allocation regarding the combinations of explainerslides and explainer videos that can be produced by the lecturer. Incorporate thescenario by referring to the different points on the production possibilities in unurdiscussion.With reference to the production possibilities curve explain the concept known asopportunity cost by discussing the trade-off concerned with shift in the production frompoint C towards point E.4.3.Explainer Slides

production possibility curve is the comparison of efficiency between production of two goods or…

Discuss how the production possibilities curve illustrates scarcity, efficiency, and inefficiency in terms of resource allocation regarding the combinations of explainer slides and explainer videos that can be produced by the lecturer. Incorporate the scenario by referring to the different points on the production possibilities in vnur discussion. With reference to the production possibilities curve explain the concept known as opportunity cost by discussing the trade-off concerned with shift in the protuction from point C towards point E.