When it is cheaper for one firm to produce a number of different commodities together than it is for a group of small firms to produce those commodities, ____ exist(s).
A. economies of scale
B. economies of scope
C. diminishing marginal returns
D. marginal cost pricing
Answer: B
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Which of the following would cause a change in the quantity demanded of a product?
A) a higher price B) a higher income C) expectations of future price increases D) All of the above are correct.
Economists characterize utility as ______.
a. essentially useless b. highly volatile c. strictly personal d. ultimately unachievable
An initial allocation of goods is called a(n)
A) endowment. B) inheritance. C) pareto set. D) general equilibrium goods set.
A bank makes an auto loan for $10,000 at an annual rate of 6 percent. Assuming no repayment is made at all during the period, after two years the borrower will owe:
A. $10,000 B. $10,600 C. $11,236 D. $11,910