If a Firm Enjoys Lower Costs Due to a Complex

question 31

Multiple Choice

If a firm enjoys lower costs due to a complex labor-intensive process,which of the following statements would then be true?

• A)Cutbacks in volume will always raise unit costs
• B)The firm is unconcerned with labor turnover
• C)An example of this process could be the practice of anti-trust law
• D)The firm's average cost rises due to moving down the learning curve
• E)The process is likely a repetitive manufacturing process such as two-piece aluminum can manufacturing

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Definitions:

Poisson Distribution

A discrete probability distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space, given a known constant rate of occurrence.

Standard Normal

A special case of the normal distribution used in statistical analysis where the mean is 0 and variance is 1.

Area

The extent or measurement of a surface, typically measured in square units.

Normal Distribution

A bell-shaped distribution that is symmetrical about the mean, describing how the values of a variable are spread or distributed.