The Criminal Records Corporation Is Operating at Its Minimum Efficient

question 43

Multiple Choice

The Criminal Records Corporation is operating at its minimum efficient scale, selling 10, 000 records per month via late-night cable TV advertising.It currently buys pressed records from Hole-in-the-Middle, Inc., which has a minimum efficient scale of 100, 000 records per month.Which of the following should Criminal Records do?

• A)Continue to buy 10, 000 records from Hole-in-the-Middle, which can make the records more cheaply.
• B)Buy 100, 000 records from Hole-in-the-Middle, so that company can reach its minimum efficient scale too.
• C)Buy Hole-in-the-Middle and use its facilities to manufacture the 10, 000 records it needs.
• D)Buy Hole-in-the-Middle and stop operating as Criminal Records because Hole-in-the-Middle is the more efficient business.
• E)Buy Hole-in-the-Middle and stop operating as Criminal Records because Hole-in-the-Middle is the larger business.

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Definitions:

Technetium

A radioactive chemical element with symbol Tc and atomic number 43, noteworthy for being the first element to be artificially produced.

Continuous Spectrum

A type of emission spectrum showing an uninterrupted band of colors from red to violet, typically emitted by an incandescent solid, liquid, or gas under pressure.

Wavelengths

The distance between consecutive peaks (or troughs) in a wave, often used in the context of electromagnetic radiation.

Ground State

The lowest energy state of an atom or other particle, which is the most stable and preferred configuration.