Question

When Henry Ford introduced the assembly line to his automobile manufacturing plant, he significantly improved his company’s ­­­­__________.

1. short-run average cost
2. economy of scale
3. small-scale production
4. profit minimization

A firm should leave production unchanged when __________.

1. marginal cost > marginal revenue
2. marginal cost < marginal revenue
3. marginal cost = marginal revenue
4. marginal cost ≥ marginal revenue

Which of the following statements about the British firm John Lewis Partnership is FALSE?

1. Its employees elect their own governing body.
2. It is a large monopoly.
3. Its workers’ ownership rights differ from stockholder rights.
4. Employee ownership ends when a worker leaves the partnership.

Answer 1

1. When Henry Ford introduced the assembly line to his automobile manufacturing plant,he significantly improved his company's economies of scale because of decrease in firm's costs due to improved manufacturing efficiencies.

Answer: option B