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 that in 2022, Apple temporarily shuts down one of its factories for an extensive renovation, and this reduces the amount of production capacity available for both types of vehicles.This is best represented by the
A)movement from E to F in Graph A.
B)movement from H to J in Graph B.
C)movement from K to L in Graph C.
D)movement from J to G in Graph B.

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 that in 2022, Apple temporarily shuts down one of its factories for an extensive renovation, and this reduces the amount of production capacity available for both types of vehicles.This is best represented by the
A)movement from E to F in Graph A. 
B)movement from H to J in Graph B. 
C)movement from K to L in Graph C. 
D)movement from J to G in Graph B.

Quizplus · Accepted Answer

The temporary shutdown of a factory reduces production capacity, which is represented by a shift inward of the production possibilities frontier, as shown by the movement from K to L in Graph C.

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