Figure 2-7 -Which of the Following Could Explain the Shift in the the Shift

question 34

Multiple Choice

Figure 2-7

-Which of the following could explain the shift in the production possibilities frontier from AB to AC in Figure 2-7?

• A) a productive improvement in petroleum production that has no effect on clothing production
• B) a productive improvement in clothing production that has no effect on petroleum production
• C) an increase in the size of the labor force that can produce either petroleum products or clothing
• D) oil drilling in Alaska is ended in order to protect the environment
• E) major oil reserves are discovered off the coast of Africa

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Definitions:

Cost-Leadership Strategy

A competitive strategy focusing on producing goods or services at the lowest cost to outprice competitors.

Differentiation Strategy

A generic business strategy that requires products to have significant points of difference to charge a higher price while targeting a broad array of market segments.

Significant Points

Major or important aspects, factors, or considerations in a given context, such as key arguments in a discussion or essential features of a project.

Market Segments

Subsections of a market composed of individuals or organizations sharing one or more characteristics that cause them to have similar product needs.