Adam Smith Used a Pin Factory to Demonstrate

question 20

Multiple Choice

Adam Smith used a pin factory to demonstrate

• A)the advantages of economies of scale.
• B)diseconomies of scale.
• C)the long-run average cost curve.
• D)the advantage of being established.

---

Definitions:

Permission

The authorization or approval given by one party to another, allowing them to take a specific action or perform a certain task.

Franchisee

An individual or company that is granted the right by a franchisor to carry out business under the franchisor's brand and operational model.

Manager

An individual responsible for directing and overseeing the work of others and making strategic decisions for a business or organization.

Company Owned Store

A retail outlet that is directly owned and operated by the brand or company that offers its products or services, as opposed to being franchised.