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:

Continental Ice Sheet

A large mass of ice covering extensive parts of continents and flowing outward from central, thicker areas, altering landscapes through erosion and deposition.

U-Shaped Valley

A glacially carved valley characterized by steep sides and a flat bottom, resembling the shape of a "U."

Lateral Moraine

A ridge of debris deposited along the sides of a glacier, marking the previous extent of the glacier's reach.

Terminal Moraine

A moraine deposited at the point of furthest advance of a glacier or ice sheet, marking its maximum extent.