Firms Often Use A(n) ________ When Working on a Major

question 265

Multiple Choice

Firms often use a(n) ________ when working on a major project involving the production of a large item such as an airplane, ship, or bridge.

• A) assembly line layout
• B) continuous production process
• C) fixed-position layout
• D) process manufacturing technique

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Definitions:

Increasing-cost Industry

An industry in which the costs of production increase as the industry expands, often due to limitations in resources or factors of production.

Long-run Supply Curve

A graphical representation showing the relationship between price and quantity supplied over a longer period, when all inputs can be varied.

Perfectly Elastic

Describes a situation in which the quantity demanded or supplied changes by an infinite amount in response to any price change, depicted as a horizontal line on a graph.

Long-run Equilibrium

A state in which all factors of production are variable, leading to a situation where firms only earn normal profits and no incentives exist for entering or exiting the industry.