Figure 2-7 Tesla opened its Gigafactory near Sparks,Nevada to produce lithium-ion batteries for both its automobiles and its Powerwall energy storage products.Figure 2-7 shows changes to its production possibilities frontier at the Gigafactory in response to new developments and different strategic production decisions.
-Refer to Figure 2-7.Suppose worker productivity increases so that the total number of batteries produced increases as Tesla adds more machinery and workers,and changes the layout of the factory.This is best represented by the

Question

Figure 2-7  Tesla opened its Gigafactory near Sparks,Nevada to produce lithium-ion batteries for both its automobiles and its Powerwall energy storage products.Figure 2-7 shows changes to its production possibilities frontier at the Gigafactory in response to new developments and different strategic production decisions.
-Refer to Figure 2-7.Suppose worker productivity increases so that the total number of batteries produced increases as Tesla adds more machinery and workers,and changes the layout of the factory.This is best represented by the

Quizplus · Accepted Answer

The movement from point G to point H in Graph B represents an increase in total output due to an increase in worker productivity and changes in the layout of the factory. This is consistent with the scenario described in the question. The movement from E to F in Graph A represents a technological improvement that allows for more efficient production, not an increase in worker productivity. The movement from K to L in Graph C represents a decrease in production due to input constraints or a decrease in efficiency, not an increase in worker productivity. The movement from H to J in Graph B represents a shift in production towards one good at the expense of the other, not an increase in total output due to an increase in worker productivity.

Figure 2-7 Tesla Opened Its Gigafactory near Sparks,Nevada to Produce