If Quick Auto Service increases the size of its shop, enabling it ...

[notis]

If Quick Auto Service increases the size of its shop, enabling it to purchase cost-saving capital equipment so that the cost of servicing a car falls, this would be an example of
 
  A) economies of scope.
  B) economies of scale.
  C) monitoring.
  D) increasing transactions costs.

Question 2

A constant marginal rate of substitution between two goods implies that they are
 
  A) perfect complements.
  B) perfect substitutes.
  C) independent goods.
  D) unattainable.

[Mochi]

Answer to Question 1

B

Answer to Question 2

B

[notis]

Correct answers!

[Mochi]

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