If Quick Auto Service Increases the Size of Its Shop

question 128

Multiple Choice

If Quick Auto Service increases the size of its shop, enabling it to purchase cost-saving capital equipment so that the cost of servicing a car falls, this would be an example of

• A) economies of scope.
• B) economies of scale.
• C) monitoring.
• D) increasing transactions costs.

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Definitions:

Urban Life

The way of living that is characteristic of cities and towns, often marked by higher population density and cultural diversity.

Social Demography

The study of the statistical and social aspects of populations, including structure and distribution.

Louis Wirth

A sociologist known for his work on urban life and the social structure of cities.

Rural Life

A lifestyle or environment characterized by living in the countryside, often associated with farming, small communities, or lower levels of urbanization.