Suppose RioTintoAlcan Is Considering the Construction of a New Aluminum

question 50

Multiple Choice

Suppose RioTintoAlcan is considering the construction of a new aluminum smelter in Northern Quebec,the operation of which requires a great deal of electricity.Suppose also that the price of electricity is predicted to rise significantly in the near future.As a result,the firm decides to embark on new research and development which leads to the development of a new production technique that uses less electricity per tonne of aluminum produced.This is an example of

• A)short- run cost minimization.
• B)short- run profit maximization.
• C)innovation away from increases in factor prices.
• D)long- run economies of scale.
• E)the marginal rate of substitution between factors.

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Choices made based on a comprehensive understanding and analysis of relevant information and data.

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