Economies of scope are said to exist when
A. one firm produces many products rather than separate firms for each.
B. many firms produce many products rather than one firm producing all.
C. one firm can produce multiple products at a lower cost than separate firms producing each.
D. many firms produce a single product rather than one firm.
Answer: C
You might also like to view...
The returns to education are
A) lowest in developing nations. B) highest in developing nations. C) never reflected in the wages of workers. D) highest in developed nations.
The tradeoff between the inflation rate and unemployment rate is represented by the:
a. consumption function. b. misery index. c. Phillips curve. d. Keynes curve.
Specialization occurs because
A. people have different skills. B. society trades current consumption for future consumption. C. society produces at the production possibilities curve. D. the production possibilities curve tends to be linear.
In an economy, the total expenditures for a market basket of goods in year 1 (the base year) was $5,000 billion. In year 2, the total expenditure for the same market basket of goods was $5,500 billion. What was the Consumer Price Index for the economy in year 2?
A. 120 B. 115 C. 110 D. 100