Figure 2-7 Mercedes Benz produces a full line of luxury automobiles,including coupes,sedans,and SUVs,at a variety of manufacturing plants across the globe.Assume Mercedes Benz produces both coupes and SUVs at its Tuscaloosa,Alabama factory.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions at this factory.
-Refer to Figure 2-7.Suppose worker productivity increases so that the total number of vehicles produced increases as the company adds more machinery,workers and changes the layout of the factory.This is best represented by the

Question

Figure 2-7  Mercedes Benz produces a full line of luxury automobiles,including coupes,sedans,and SUVs,at a variety of manufacturing plants across the globe.Assume Mercedes Benz produces both coupes and SUVs at its Tuscaloosa,Alabama factory.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions at this factory.
-Refer to Figure 2-7.Suppose worker productivity increases so that the total number of vehicles produced increases as the company adds more machinery,workers and changes the layout of the factory.This is best represented by the

Quizplus · Accepted Answer

The movement from G to H in Graph B represents an increase in the total number of vehicles produced due to an increase in worker productivity and changes in factory layout. This shift results in an outward shift of the production possibilities frontier, indicating an increase in the maximum potential production of both SUVs and coupes. None of the other options have such a clear representation of an increase in worker productivity and changes in factory layout.

Figure 2-7 Mercedes Benz Produces a Full Line of Luxury