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.

---

Definitions:

Validity

The degree to which a test accurately measures what it purports to measure or the extent to which a study's conclusions can be considered true.

Readiness Tests

Tests that measure one’s readiness for moving ahead in school. Often used to assess readiness to enter kindergarten or first grade. It is a type of achievement test.

Diagnostic Testing

A process used in medicine and other disciplines to identify the presence or absence of a condition, disease, or anomaly.

Educational Ability

The capacity or skill set a person possesses which contributes to their level of performance in educational settings.