In the early 2000s car makers began to design vehicles\' chassis, engine, and tr
ID: 1241846 • Letter: I
Question
In the early 2000s car makers began to design vehicles' chassis, engine, and transmissions so that different models could be produced on the same assembly line. Within the first year of implementing the plan, Ford cut production costs by $240 per car.references
1. What cost concept was Ford taking advantage of to produce its savings?
Instructions: Select all that apply.
A.Diminishing marginal productivity
B.Team spirit
C.Economies of scope
D.Increasing marginal productivity
E.Economies of scale
F.Depreciation
Explanation / Answer
D.Increasing marginal productivity they need not buy each product from diff. locations since they are making it..hence marginal productivity increases..increasing profits.