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?

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10-06-2016
Social Studies

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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?

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yelloflash29 yelloflash29 · Answer 1 · 2016-06-20T09:45:48+02:00

yelloflash29 yelloflash29

20-06-2016

Since there are only two technicians, they can only take so much work. The production possibility curve will go up initially but will flatten as the technicians reach their limit.

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