The president of Toyota's Georgetown plant was quoted as saying, Demand for high volumes saps your energy. Over a period of time, it eroded our focus and thinned out the expertise and knowledge we painstakingly built up over the years.
This quote suggests that
A) as Toyota expanded its capacity, it experienced diseconomies of scale.
B) Toyota was focused on churning out cars for which it did not invest sufficiently in training its workers.
C) high demand for Toyota's cars prevented the company from focusing on its strength: auto design.
D) Toyota was experiencing an excess demand for its automobiles which it had difficulty keeping up with.
Question 2
An increase in the supply of capital, which is a complement to labor, will lead to
A) an increase in the quantity of labor demanded. B) a decrease in the demand for labor.
C) an increase in the demand for labor. D) a decrease in the quantity of labor demanded.
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