Question
A manufacturing firm is producing two goods, X and Y, with a bowed out (concave) PPC. If management decides to hire more workers in the
A manufacturing firm is producing two goods, X and Y, with a bowed out (concave) PPC. If management decides to hire more workers in the factory and upgrade their machinery, then what changes will it bring to the firm's PPC?
The PPC will become a straight line.
The PPC will become bowed in (convex).
The PPC will remain the same.
The PPC will shift inward.
The PPC will shift outward.
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Managerial Economics Theory Applications and Cases
Authors: Bruce Allen, Keith Weigelt, Neil A. Doherty, Edwin Mansfield
8th edition
978-0393124491, 393124495, 978-0039391277, 393912779, 978-0393912777
