Adam Smith Used a Pin Factory to Demonstrate

question 59

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.

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Definitions:

Small Crop

A small crop refers to a lesser yield of agricultural produce than usual, often due to factors like weather conditions, pest infestations, or reduced acreage.

Drought

A prolonged period of abnormally low rainfall, leading to a shortage of water.

Price Inelastic

A condition where the quantity demanded of a good or service is relatively unaffected by changes in its price.

Technological Change

Refers to advancements or improvements in technology, which can lead to increased efficiency and productivity in various sectors.