Which of the following best describes the effect of a new technology that doubles the efficiency of producing solar panels?

• A. The PPF will remain unchanged as the technology only affects one good.
• B. The entire PPF will shift outward, increasing the production capacity of all goods.
• C. The PPF will shift outward on the axis representing solar panels, increasing their production capacity.
• D. The PPF will shift inward on the axis representing solar panels, decreasing their production capacity.

Answer: (C)