The Ability to Rapidly and Inexpensively Switch Production from One

question 5

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:

Modern Corporation

A contemporary business entity characterized by complex structures, legal personhood, and often, large scale operations and global reach.

Late 19th Century

A period roughly from 1870 to 1900 marked by significant industrial, social, and political changes worldwide.

Vertical Integration

A business strategy where a company controls multiple stages of production or distribution within the same industry to increase efficiency and reduce costs.

Carnegie Steel

A steel production company established by Andrew Carnegie in the late 19th century, which played a significant role in the growth of the American steel industry.