Answer Happy

Figure 1. The PPFs of Nation 1 and Nation 2 Nation 1 Nation 2 Corn Corn Tons) B' B Bananas (tons) Bananas 1) Nation 1 has decreasing opportunity costs in the production of bananas and, with specialization, produces at point B. 2) Nation 1 has increasing opportunity costs in the production of bananas and, with specialization, produces at point B. 3) Nation 1 has increasing opportunity costs in the production of corn and, with specialization, produces at point B. Nation 1 has increasing opportunity costs in the production of bananas and, A'