Apple Recently Announced That the Company Is Exploring the Electric

question 404

Multiple Choice

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 response to changing consumer demands,Apple cuts back on the production of self-driving automobiles and increases its production of traditional automobiles.This strategy is best represented by the

• A)movement from F to E in Graph A.
• B)movement from G to J in Graph B.
• C)movement from K to L in Graph C.
• D)movement from J to H in Graph B.

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Definitions:

Private Cost

The costs directly incurred by those who are producing or consuming goods or services.

Marginal Social Benefit

The additional gain to society as a whole from an extra unit of production.

Marginal Social Cost

The cost to society of producing an additional unit of a good or service, including both the private costs and any external costs.

Marginal Social Benefits

The extra advantage to the entire community from using an additional unit of a product or service.