Describe how an accounting firm could experience economies of scale
Specialization of labor can produce economies of scale. Specialization of labor could occur if the firm hires new workers with different areas of expertise. Suppose that the first person specializes in individual tax returns, the second person specializes in small business tax returns, and the third person specializes in farm tax returns. The three employees together could produce more than triple the number of tax returns that the first person could produce.
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Refer to Figure 7-3. Without the quota, the domestic price of peanuts equals the world price which is $2.00 per pound. What is the quantity of peanuts demanded by domestic consumers in the absence of a quota?
A) 10 million pounds B) 28 million pounds C) 30 million pounds D) 40 million pounds
Subprime borrowers ________
A) are those individuals who owe more on their mortgage than the value of their home B) possess a relatively low FICO score C) rely on mortgage-backed securities to support their mortgage applications D) are those with an income level below the value of their mortgage