A Bicycle Factory Finds That It Can Lower Costs If

question 235

Multiple Choice

A bicycle factory finds that it can lower costs if it also produces tricycles and unicycles. This is an example of

• A) economies of scale.
• B) economies of scope.
• C) comparative advantage.
• D) opportunity cost.

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Definitions:

Covenant of Quiet Enjoyment

A lease promise that the tenant will have peaceful and undisturbed use of the property, without interference from the landlord or others with superior title.

Constructive Eviction

An action by a landlord that significantly interferes with or diminishes the use of a property by a tenant, which leads to the tenant being effectively forced to leave.

Essential Services

Essential Services are basic services that are deemed necessary for the wellbeing of the community, such as water, electricity, and medical care.

Implied Warranty of Habitability

A legal doctrine that requires landlords to maintain residential rental properties in a condition fit for human habitation, even if not explicitly stated in the lease agreement.