If the Minimum Efficient Scale in Microwave Oven Production Is

question 161

Multiple Choice

If the minimum efficient scale in microwave oven production is 100,000 units per year,it implies that _____

• A)the average cost of producing 50,000 microwave ovens is greater than the average cost of producing 100,000 microwave ovens.
• B)the average cost of producing 50,000 microwave ovens is equal to the average cost of producing 100,000 microwave ovens.
• C)the total cost of producing 50,000 microwave ovens is greater than the total cost of producing 100,000 microwave ovens.
• D)the firm should not produce more than 50,000 microwave ovens.
• E)marginal cost exceeds average cost at 100,000 microwave ovens.

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Definitions:

Bending Stress

The internal stress induced in a material when subjected to external forces causing it to bend, crucial in engineering design to prevent failure.

Torsional Stress

Stress that results from an applied torque or twisting force on a material, potentially leading to distortion or failure.

Spinout Failure

A condition where a wheel spins freely without traction, potentially leading to loss of control or damage to the vehicle.

Power Divider

Interaxle differential gearing used in tandem drive, highway tractors to split torque between the two drive axles. Also known as interaxle differential.