Which of the following is true regarding the relationship between returns to scale and economies of scope?
A) A firm experiencing economies of scope must also experience increasing returns to scale.
B) Economies of scale and economies of scope must occur together.
C) A firm experiencing increasing returns to scale must also experience economies of scope.
D) There is no definite relationship between returns to scale and economies of scope.
D
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The total output produced with any quantity of labor is equal to the sum of the
A) marginal products of each of the workers hired. B) average products of each of the workers hired. C) total wages the firm pays its workers. D) Both answers A and B are correct.
When a good is normal:
A. an increase in income raises consumption at each price, so the demand curve shifts to the left. B. an increase in income raises consumption at each price, so the demand curve shifts to the right. C. a decrease in income lowers consumption at each price, so the demand curve shifts to the right. D. an increase in income lowers consumption at each price, so the demand curve shifts to the left.
Which of the following is an exogenous variable in the Three-Sector-Model?
a. Real Domestic GDP b. Open market operations c. Quantity of real credit per time period d. Quantity of currency per time period e. All of the above are exogenous.
The harmful effect of a price floor to ________ is ________.
A. consumers; the floor creates a shortage of the product B. producers; the selling price of the product is below the equilibrium price C. consumers; the selling price of the product is below the equilibrium price D. producers; the floor creates a surplus of the product