If Quick Auto Service Increases the Size of Its Shop

question 128

Multiple Choice

If Quick Auto Service increases the size of its shop, enabling it to purchase cost-saving capital equipment so that the cost of servicing a car falls, this would be an example of

• A) economies of scope.
• B) economies of scale.
• C) monitoring.
• D) increasing transactions costs.

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Definitions:

City Bus Depot

A facility or station where city buses are maintained, parked, and dispatched for public transportation services.

Best Title

A legal concept indicating that a property title is free of liens or legal questions about the property's ownership.

Mountain Trail

A path or track laid out across mountainous terrain for hiking, cycling, or other outdoor activities.

Abandoned Property

Assets or possessions left by an owner who intentionally relinquishes all rights to control it, often leading to the right of acquisition by others.