You are a junior executive of a new cellular phone carrier called Technologies of the Future (TOF) that competes in the same market as Verizon Wireless, AT&T, and T-Mobile. You are tasked with writing a business report for the Committee Board Members of TOF, proposing to either expand or remain at the current level of production. The goal of your research is to determine the firm’s efficiency and how additional market shares could be acquired. Your findings are crucial to the firm. Write a professional business report that addresses the following key points.
Discuss how the four factors of production relate to the Production Possibilities Curve.
If TOF had the choice to either produce consumer goods or capital goods, explain what is meant by the Production Possibilities Curve, and explain points that would be efficient and inefficient, as well as an unattainable point.
Discuss how inefficient and unattainable can be experienced.
Define Comparative and Absolute Advantage.
State whether TOF has a comparative or absolute advantage if they possess over 30% of the domestic market in the United States. (Note: we are discussing the production and sale of smartphones and service plans by TOF in the United States only.)
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