Author Question: The production of 1,000 shirts leaves an apparel manufacturer with a capacity to produce no more ... (Read 37 times)

FButt · **on:** Jun 30, 2018

The production of 1,000 shirts leaves an apparel manufacturer with a capacity to produce no more than 1,100 trousers during a month. This implies:
a. the production level is inefficient.
b. that if the production of trousers is reduced, that of shirts will also decline.
c. that a reallocation of resources may make previously unachievable outcomes achievable.
d. the production level is efficient.

Question 2

All these factors can lead to economies of scale in production, except:
a. division of labor that helps in specialization.
b. merger of two firms.
c. hiring larger machines which are more efficient than the smaller ones.
d. increase in overhead expenses.
e. research and development.