Refer to the Following Figure for the Next Two Questions

question 52

Multiple Choice

Refer to the following figure for the next two questions.

-According to the figure,a new technology that makes it easier to peel,core,and prepare apples will cause:

• A) the entire production possibilities frontier (PP
• F) to shift outward.
• B) the entire PPF to shift inward.
• C) the PPF to rotate outward to a larger maximum quantity of apple pies with no change in maximum blueberry pies.
• D) the PPF to rotate outward to a larger maximum quantity of blueberry pies with no change in maximum apple pies.
• E) the PPF to stay exactly the same because there is no change in resources.

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Definitions:

Monopolist

An entity that is the sole provider of a particular product or service, controlling the market and setting prices without competition.

Marginal Revenue

The additional income received from selling one more unit of a product.

Marginal Cost

The additional cost resulting from the production of one more unit of a product or service.

Profit Maximizing

The procedure a business uses to ascertain the most profitable price and volume of output.