It costs a firm $80 per unit to produce product A and $50 per unit to produce B individually. If the firm can produce both products together at $120 per unit of product A and B, this exhibits signs of
a. Economies of scale
b. Economies of Scope
c. Diseconomies of Scale
d. Diseconomies of Scope
b
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When the market value of the dollar rises relative to other currencies around the world, we say that
A) the supply of dollars has increased. B) the dollar has appreciated. C) the dollar has depreciated. D) the demand for dollars has increased.
Discuss the relationship between U.S. competitiveness relative to other countries and standards of living in the United States
What will be an ideal response?
Imports are a leakage in the sense that
a. the international financial system is unstable. b. consumers buy foreign output of goods and services. c. foreigners earn less than U.S. workers. d. a trade deficit increases aggregate demand.
Market economies rely on which of the following to allocate scarce resources?
a. government b. consumers c. relative prices d. real interest rates