Exhibit 14-1 Which of the Following Is Indicated

question 73

Multiple Choice

Exhibit 14-1 Which of the following is indicated in Exhibit 14-1?

• A)Rubber is cheaper to produce than tires.
• B)The total cost of producing 100, 000 tires is greater than the total cost of producing 200, 000 tires.
• C)The minimum efficient scale of producing tires is 200, 000 tires.
• D)The minimum efficient scale of producing tires is greater than 200, 000 tires.
• E)The marginal cost of the 200, 000th tire must exceed the average cost of 200, 000 tires.

---

Definitions:

Continuous Improvement

A management philosophy focusing on the incremental improvement of products, services, and processes over time.

Lean Business Model

An approach to business aimed at creating value for customers with minimal waste and resources.

Planning (P)

The process of setting objectives, developing strategies, and outlining tasks and schedules to achieve the goals.

Implementation (I)

The process of putting a decision or plan into effect; the action that must follow any preliminary thinking in order for something to actually happen.