Question

Auto Bull's-Eye offers a 10-minute oil change and 30-minute brake check. There are two technicians who perform each of these services. Next week, the shop is offering a discounted oil change. How might this affect the production possibilities curve for next week? The shop would decrease the brake-check price to eliminate scarcity. The shop would increase worker pay to make up for the opportunity cost of not doing brake checks. The shop would shift production to oil changes and away from brake checks. The shop would shift production to brake checks and away from oil changes.

Answer 1

The shop would shift production to oil changes and away from brake checks

Step-by-step explanation:

Answer 2

The shop would shift production to oil changes and away from brake checks

Step-by-step explanation:

Production possibility represent the products or services in which the company will focus their resources on in the future.

When there is a discount on oil change, there will be higher number of customers who come in in order to ask for that service.

Since there is no additional employees during this discount period, that existing employees to check brakes will be transferred to providing oil change services. This will make the curve shift production to oil changes and away from brake checks