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The following graph shows the production possibilities frontier for a company that manufactures laptops and smartphones. The company decides to produce three smartphones but is inefficiently allocating its resources.

Plot a point on the graph that corresponds to this decision. (Note: There may be more than one possible answer, but plot the option closest to the PPF.)

The graph shows a Production Possibilities Frontier (PPF) for a company that manufactures laptops and smartphones. Since the company is producing three smartphones inefficiently, we need to plot a point that is inside the PPF curve but closest to the point where 3 smartphones are produced.

To solve this, let's analyze the graph:

1. **Find the point for 3 smartphones**: Look at the x-axis where the number of smartphones is 3.
2. **Determine an inefficient allocation**: The point must lie inside the PPF curve but close to the point on the curve where the company would efficiently produce 3 smartphones.

If you have any questions or want further details on the graph analysis or the PPF concept, feel free to ask!

### Follow-up Questions:
1. What does it mean for a point to be inside, on, or outside the PPF curve?
2. How do opportunity costs relate to the PPF?
3. Can the PPF shift, and if so, what factors might cause a shift?
4. What is the significance of producing efficiently versus inefficiently?
5. How does the PPF illustrate scarcity and trade-offs in economics?

**Tip:** The PPF is a useful tool in economics to illustrate the concept of opportunity costs and resource allocation efficiency.

The following graph shows the production possibilities frontier for a company that manufactures laptops and smartphones. The company decides to produce three smartphones but is inefficiently allocating its resources. Plot a point on the graph that corresponds to this decision. (Note: There may be more than one possible answer, but plot the option closest to the PPF.)

Explore how inefficient resource allocation is illustrated on a Production Possibilities Frontier (PPF) graph. This example uses a company producing laptops and smartphones to demonstrate the concept. Ideal for college-level introductory economics students.

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