Which of the following offers an example of economies of scope?
a. When production of economics textbooks, management textbooks, and finance textbooks can be done by a single publishing company at lower average cost than by separate publishing companies that specialize in just one topic.
b. The minimum average cost of producing a unit of output is first realized when 600,000 units are produced each month.
c. When a firm finds that it is more profitable to contract for certain inputs or functions supplied by others than to produce those inputs or functions itself.
d. When the average cost per unit of output falls as the firm increases its scale of production of economic textbooks.
a
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Could the advent of the Internet completely eliminate frictional unemployment?
What will be an ideal response?
"A competitive market achieves economic efficiency by maximizing the sum of consumer surplus and producer surplus." This statement
A) is true only if there are no positive or negative externalities in the market. B) is true only if there are positive externalities in production in the market. C) is true in theory, but economic efficiency cannot be achieved in a real market. D) is true only if there are no negative externalities in the market.
Suppose that each worker must use only one shovel to dig a trench, and shovels are useless by themselves. In the long run, the firm will experience
A) increasing returns to scale. B) constant returns to scale. C) decreasing returns to scale. D) The returns to scale cannot be determined from the information provided.
Identify the correct statement
a. The removal of financial market regulations has lowered the probability of a financial crisis to zero. b. Investment in residential housing in the U.S. was less volatile during the era prior to the removal of Regulation Q. c. Investment in residential housing in the U.S. was more volatile after the removal of Regulation Q. d. The removal of financial market regulations lowered output volatility. e. The removal of financial market regulations increased variability in consumer spending.