Models for Financial Economics (MFE) Practice Test

The advantage of powder metallurgy technology in producing gears and bearings primarily stems from the unique properties it imparts to the final products. When manufactured using this method, the high porosity in the components allows for the effective retention of lubricants. Lubricants can be absorbed into the porous structure, which can enhance the performance, reduce friction, and improve wear resistance in operational conditions. This property can lead to extended service life and improved efficiency of gears and bearings.

Additional context for the other options is important to understand their limitations relative to the correct choice. The ability to create a variety of geometries is indeed a benefit of powder metallurgy, but it is not as critical for the functionality of gears and bearings as the lubricant retention. While heating components is part of the process of sintering in powder metallurgy, it is a typical feature of many manufacturing methods and does not specifically highlight the advantages of this technology over others in the context of gears and bearings. Similarly, while powder metallurgy can be cost-effective, this advantage can vary based on materials and the complexity of the parts, making it less universally advantageous compared to the significant benefits of porosity in lubricant retention.