Suppose Honda Can Triple Its Production of Civics by Tripling

question 123

Multiple Choice

Suppose Honda can triple its production of Civics by tripling its production facility for those cars. This indicates the presence of

• A)constant returns to scale.
• B)economies of scale.
• C)diseconomies of scale.
• D)the law of diminishing returns.
• E)minimum efficient scale.

---

Definitions:

Consent

Agreement or permission for something to happen or someone to do something, often given expressly by all involved parties.

Forced

Action taken under compulsion or pressure, lacking voluntary intention.

Fraudulent Misrepresentation

A false statement made knowingly, without belief in its truth, or recklessly, with disregard to its truth, which is intended to induce another party to enter into a contract.

Scienter

Knowledge by the misrepresenting party that material facts have been falsely represented or omitted with an intent to deceive.