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:

Pseudo-Foreign Corporation

A business entity that operates in a country different from its country of incorporation but is treated as a domestic company for legal or tax purposes.

Foreign Corporation

A corporation that is incorporated in one jurisdiction but is doing business and registered to operate in another jurisdiction.

Thin Capitalization

A financial situation in which a company has a high level of debt compared to its equity.

Debt-to-Equity Ratio

A financial metric that shows the comparative ratio of debt to shareholders' equity utilized to fund a company's assets.