Suppose that from 2020 to 2025, the resources Apple uses to produce its automobiles remain constant, while

Question:

Suppose that from 2020 to 2025, the resources Apple uses to produce its automobiles remain constant, while improvements in technology in 2025 allow Apple to produce the additional quantity of two-door convertibles shown in the figure below, but no additional four-door sedans. Draw a graph that illustrates this technology change. Be sure to show both the 2020 and the new 2025 PPFs. What is the opportunity cost to Apple of producing one four-door sedan in 2020? Briefly explain whether the opportunity cost will be the same in 2025?

Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...