Figure 2-11 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 2-11 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions at this factory.
-Refer to Figure 2-11. 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 2-11  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 2-11 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions at this factory.
-Refer to Figure 2-11. 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 overall productivity as the total number of vehicles produced increases. This is due to the addition of more machinery, workers, and changes in the layout of the factory. Option A (movement from E to F) represents a shift in the production possibilities frontier, not an increase in productivity. Options C (movement from K to L) and D (movement from J to H) represent changes in the production mix, not an increase in overall productivity.

Figure 2-11 Mercedes Benz Produces a Full Line of Luxury