Doe Purchased an Automobile from Jones for $1,000

question 75

True/False

Doe purchased an automobile from Jones for $1,000.Unknown to Doe,Jones had used the automobile as security for a loan from his bank,and the bank had registered its security interest in the automobile under the provincial personal property security registration legislation.A few months after the sale,Jones defaulted on the loan,and the bank discovered that Doe was in possession of the automobile.
-The bank is not entitled to seize the automobile,because it had not given Doe notice of its claim against the vehicle before Doe purchased it.

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Definitions:

Economies of Scale

Savings achieved by companies because of larger operational volumes, where the cost for each unit produced tends to drop as the scale of production grows.

Long-run Average Cost

The total cost per unit of output produced, when all input factors are variable, considered over a sufficient period.

Long-run Average Cost

The average cost per unit of output over a long period, where all inputs can be adjusted by firms. This includes the cost of changing production levels and entering or exiting an industry.

Economies of Scale

Economies of scale refer to the reduced costs per unit that businesses experience as their operation size increases, typically resulting in lower costs per unit as the scale expands.