The Ability to Rapidly and Inexpensively Switch Production from One

question 53

Multiple Choice

The ability to rapidly and inexpensively switch production from one product to another enables what are sometimes referred to as:

• A) economies of scale.
• B) economies of size.
• C) economies of shape.
• D) economies of scope.
• E) economies of shipping.

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Definitions:

Rectification

The correction of a mistake in an agreement that would have rendered the agreement impossible to perform.

Innocent Misrepresentation

A false statement made without knowledge of its falsehood, leading another to enter into a contract under mistaken beliefs, without intent to deceive.

Unilateral Mistake

An error made by one party in a contract, which may not automatically void the contract unless certain criteria are met.

Material Term

An essential clause or provision in a contract that significantly affects the rights and obligations of the parties involved.