Question: (Pup; 3.5 Lehman p. 194 Discussion Question 2) Elevators generally break down at random and for different reasons. Elevator maintenance contractors must have trained service


(Pup; 3.5 Lehman p. 194 Discussion Question 2) Elevators generally break down at random and for different reasons. Elevator maintenance contractors must have trained service personnel to provide routine and emergency services. Shan On Elevator has 200 service personnel to maintain 1,000 elevators. (a) Suppose that Shan On has received a contract to maintain an additional 1,000 elevators. Do you expect that Shari On will need to double its service personnel? Why or vvhy not? (1)) Does this example in (a) illustrate economies of scale or scope? (c) Escalators and elevators use quite different technology and parts. But man}r clients operate both escalators and elevators. Are there any economies of scope for a contractor to maintain both escala- tors and elevators
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