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have given up on Improving diesel engines. currently use. The Increase In fuel use cre- ates an Important trade-off for automakers Thinking Critically 1. Continuing

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have given up on Improving diesel engines. currently use. The Increase In fuel use cre- ates an Important trade-off for automakers Thinking Critically 1. Continuing to produce diesel-powered cars will mean that Toyota can produce fewer hybrids than It could if it were Diesel-powered cars (per week) to switch all Its production to hybrids. Given the generally agreed upon bright future for hybrids, why would Toyota 400 continue to produce diesel-powered cars? PPF 2015 2. Assume that the graph below accurately represents Toyota's production possi- bilities frontiers at its Canadian plants for 2013 and 2015. Also assume that PPF 2013 In 2015 it has customer orders for 500 hybrids per week and 400 diesel-pow- ered cars per week. Explain whether Toyota can fill all of these orders from Its 500 800 Hybrids Canadian plants. (per woek)

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