Mobica provides car furniture to Daimler and Toyota. When would Mobica factory managers face a trade -off between Daimler car furniture and Toyota car furniture?

Question

Quizplus · Accepted Answer

When Mobica is operating at its Production Possibility Frontier (PPF), it means the factory is utilizing all its resources efficiently. At this point, producing more of one good (e.g., Daimler car furniture) would mean producing less of another (e.g., Toyota car furniture), hence facing a trade-off.

Mobica Provides Car Furniture to Daimler and Toyota