Figure 2-7

Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
-Refer to Figure 2-7.Assume a technological advancement greatly reduces the cost to produce self-driving vehicles.This is best represented by the

Question

Figure 2-7
  
Apple recently announced that the company is exploring the electric vehicle market, and is looking to produce vehicles as early as 2020.Assume Apple chooses to produce both traditional electric-engine vehicles and self-driving electric-engine vehicles.Figure 2-7 shows changes to its production possibilities frontier in response to new developments and different strategic production decisions.
-Refer to Figure 2-7.Assume a technological advancement greatly reduces the cost to produce self-driving vehicles.This is best represented by the

Quizplus · Accepted Answer

The movement from E to F in Graph A represents a decrease in the cost of production, as the supply curve shifts to the right.

Figure 2-7 Apple Recently Announced That the Company Is Exploring the Electric