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. In response to changing consumer demands, Mercedes-Benz cuts back on the production of SUVs and increases its production of coupes. This strategy is best represented by

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. In response to changing consumer demands, Mercedes-Benz cuts back on the production of SUVs and increases its production of coupes. This strategy is best represented by

Quizplus · Accepted Answer

Graph B represents the production of coupes and SUVs at the Tuscaloosa factory. Movement from point H (higher production of SUVs) to point J (lower production of SUVs and higher production of coupes) shows the shift in production towards increasing coupe production and reducing SUV production, which is the strategy described in the question. The other movements in the other graphs do not represent this specific production decision.

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