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:

Holy Roman Empire

A multi-ethnic complex of territories in central Europe that developed during the Early Middle Ages and continued until its dissolution in 1806.

Notre-Dame

A world-renowned Gothic cathedral in Paris, famous for its architectural beauty, flying buttresses, and significant role in French culture and history.

Saint-Denis

A suburb of Paris, France, known historically for the Basilica of Saint-Denis, a burial site of French royalty and a pioneering masterpiece of Gothic architecture.

Gothic Style

An architectural style that flourished in Europe during the High and Late Middle Ages, characterized by features such as pointed arches, ribbed vaults, and flying buttresses, emphasizing verticality and light.