Suppose There Is an Improvement in Technology

question 14

Multiple Choice

Suppose there is an improvement in technology.Which statement best reflects what would happen to a production possibilities frontier?  

• A) A parallel shift of the production possibilities frontier would always result. 
• B) A parallel shift of the production possibilities frontier would never result. 
• C) A movement along the production possibilities frontier would be indicated. 
• D) The production possibilities frontier would shift outward but NOT necessarily to a parallel position.

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Definitions:

Intangible Assets

Non-physical assets that have value, such as patents, trademarks, copyright, and goodwill.

Sales Potential

An estimate of the maximum total revenue a product or service can generate under ideal conditions.

Business Owners

Individuals who legally possess a company or business, bearing the risks and enjoying the benefits of the entity's operations.

Business Liquidations

The process of closing a business and distributing its assets to claimants, often due to insolvency or inability to continue operations.