Graph A Automoble Powerwall batteries Powerwal Powerwal batteries batteries Tesl

Question

Graph A Automoble Powerwall batteries Powerwal Powerwal batteries batteries Tesla opened its Gigafactory near Sparks, Nevada to produce lithium- ion batteries for both its automobiles and its Powerwall energy storage products. The figure shows changes to its production possibilities frontier at the Gigafactory in response to new developments and different strategic production decisions. Assume that in 2024, Tesla temporarily shuts down part of the Gigafactory for an extensive renovation, and this reduces the amount of production capacity available for both types of batteries. This is best represented by the O A. movement from H to Jin Graph B. O B. movement from K to L in Graph C. O C. movement from J to G in Graph B 0 D. movement from E to F in Graph A.

Explanation / Answer

Answer : The correct option is C.

Because here Telsa shuts down the production of Gigafactory temporarily. As Gigafactory produce two types of battery, hence the temporary shut down of Gigafactory reduces the production of both types of battery. Because of decrease in production of two type batteries the production possiblity curve shifts to inward. In given diagrams only Graph B shows two Production possiblity frontiers. Now on the basis of question statement if Gigafactory's two types battery production decrease temporarily then the production possiblity frontier shifts to inward. According to given option C, if in Graph B there is a movement from J to G then this shows the inward shifting of production possiblity frontier. Therefore, option C brings the correct statement.

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