A Firm Producing Calculators and Cell Phones Purchases New Machinery

Multiple Choice

A firm producing calculators and cell phones purchases new machinery that increases the productivity of producing calculators.Assuming that the number of calculators produced is measured on the x-axis and the number of cell phones produced is measured on the y-axis,how will the introduction of the new machinery change the firm's production possibilities curve?

A) The production possibilities curve will shift to the left.
B) The production possibilities curve will shift to the right.
C) The production possibilities curve will pivot rightward about the y-axis.
D) The production possibilities curve will pivot rightward about the x-axis.