How would a Version stamping machine help a firm achieve economies of scale?
Please provide the best answer for the statement.
This stamping machine allows a firm to produce new parts in just 5 minutes instead of the eight hours required by older and smaller machines. The Vernon stamping machine can make 5 million parts a year and can produce cost savings for an auto maker so long as the auto maker has sufficient production to absorb and use all the parts the Vernon machine makes each year. In that case, the machine helps a firm achieve large-scale production of autos and lowers the cost for auto parts.
You might also like to view...
One characteristic of automatic stabilizers is that
A. they automatically produce surpluses during recessions and deficits during inflation. B. they reduce the size of the public debt during times of recession. C. they have no effect on the distribution of income. D. they require no new legislative action by the government to have an effect.
Refer to Figure 3-5. At a price of $5, the quantity sold
A) is 2 units. B) is 4 units. C) is 6 units. D) cannot be determined.
Use the above table. What will the price be before external costs are internalized with a tax?
A) $14 B) $13 C) $12.20 D) $1.80
If the current account and capital account are both in surplus, the official reserve account does not have to be in deficit
a. True b. False Indicate whether the statement is true or false