Economies of scope
A) is a situation in which it is more expensive to produce goods separately than jointly.
B) is the opposite of economies of scale.
C) occur whenever only one good is produced at a time.
D) are an example of the gains from specialization.
A
You might also like to view...
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Country A has 200 workers. Suppose a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has 400 workers. Two possible consumption bundles that Country B could produce are:
A. (7,200 bananas, 2,400 tomatoes) and (3,600 bananas, 1,200 tomatoes) B. (7,200 bananas, 0 tomatoes) and (4,000 bananas, 1,200 tomatoes) C. (3,600 bananas, 1,200 tomatoes) and (1,800 bananas, 1,600 tomatoes) D. (1,800 bananas, 1,800 tomatoes) and (900 bananas, 2,200 tomatoes)
All the land in a California valley is owned by one person. The supply of land is fixed and is rented each year to farmers who bid for it in an open auction. Given the rents they must pay, the farmers barely earn subsistence. Sympathy for the poor farmers leads the state to bring in irrigation facilities to raise the productivity of the farms and raise the farmers’ income. The most likely outcome is
A. the farmers will be better off. B. the farmers and the landlord will share the new prosperity. C. only the landlord will be better off. D. no one will prosper.
Consider Figure 8.9. If the players choose independently, what will be the outcome?
A. Becky chooses a low price and David chooses a low price. B. Becky chooses a high price and David chooses a low price. C. Becky chooses a low price and David chooses a high price. D. Becky chooses a high price and David chooses a high price.
Which of the following is most likely to generate a surplus?
A. a price ceiling B. a price floor C. an illegal market D. all of these