The Production of Cigarettes Is Highly Automated; However,a Worker Is

question 88

Multiple Choice

The production of cigarettes is highly automated; however,a worker is required to monitor each machine.Machines and workers do not interact with one another.Given this information,there are most likely

• A) economies of scale.
• B) economies of scope.
• C) constant returns to scale.
• D) increasing returns to scale.

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Definitions:

Investment Turnover

A measure of a company's efficiency in using its assets to generate sales or revenue, calculated as sales divided by average assets.

Return on Investment

A measure of the profitability of an investment, calculated as the ratio of net profit to initial cost.

Investment Turnover

A ratio that measures how effectively a company uses its invested capital to generate sales revenue.

Return on Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated as a percentage of the investment's profit to its cost.