Bubba Burgers has discovered there are economies of scope available to the restaurant. Which is most likely to be a response to this discovery?
A) Bubba adds more varied inputs to burger production.
B) Bubba expands burger production, focusing on that one good.
C) Bubba contracts burger production.
D) Bubba adds grilled chicken sandwiches to the menu.
E) Bubba cuts back on the diversity of the menu.
D
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Changes in which of the following do NOT shift the AS curve? i. the price level ii. potential GDP iii. the money wage rate
A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
The above figure shows Jane's budget line and two of her indifference curves. Which of the following happens to Jane's budget line if there were a decrease in her monthly dining out budget?
A) It would bend toward the origin, becoming more convex. B) It would bend away from the origin, becoming more concave. C) It would shift rightward and not change its slope. D) It would shift leftward and not change its slope.
If the FOMC's directive indicates a change in monetary policy, the account manager at the Fed's Open Market Trading Desk must
A) design dynamic open market operations. B) design defensive open market operations. C) seek approval of the change from the Secretary of the Treasury. D) seek approval of the change from a majority of the presidents of the Federal Reserve district banks.
Scarcity and shortages differ in that
A) scarcity is caused by natural disasters and shortages are caused by mistakes people make. B) scarcity is a condition of human life while shortages are usually temporary phenomena related to an imbalance between the amount desired and the amount produced. C) scarcity is a type of shortage but shortage is a broader concept. D) shortages apply to resource markets while scarcity applies to product markets.