Which of the following is an example of a producer taking advantage of economies of scope?
a. A farmer buys more land so he can produce more soybeans.
b. GM closes a Chevy truck plant in response to a decline in the demand for trucks.
c. Disney World stays open later to serve more customers per day.
d. A dairy farmer produces cow's milk and butter.
e. A mouthwash firm expands production by improving management efficiency.
D
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If rational workers and firms know that the Federal Reserve is following a contractionary monetary policy, they will expect inflation to ________ and will adjust wages so that the real wage ________
A) increase; decreases B) decrease; increases C) increase; remains unchanged D) decrease; remains unchanged
A change in the equilibrium real interest rate may result from ________
A) an autonomous monetary policy B) a change in the central bank's target inflation rate C) a change in expected inflation D) all of the above E) none of the above
A business incurs the following costs per unit: Labor - $5/unit; Materials $3/unit and rent - $5000/month. If the firm produces 100 . units a month, the total costs equals
a. $5,000 b. $8,000 c. $13,000 d. $3,000
Creating economic growth:
A. is well understood by macroeconomists. B. has no central tenets upon which the theory is based. C. involves savings, capital, labor, and technology. D. is an easy thing for policy-makers to achieve with correct taxation policy.