If a firm experiences economies of scope, per unit production costs fall as it produces more than one kind of product
a. True
b. False
A
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In the above figure, if the price is P1 and the firm produced Q1, the firm's economic profit is ________ than if it produced Q2 and ________ than if it produced Q3
A) less; less B) less; more C) more; less D) more; more
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
A budget constraint:
A. shows different bundles of goods that all yield the same total utility. B. shows different bundles of goods that all cost the same amount. C. shows different bundles of goods that all maximize an individual's utility. D. shows how much income is needed to maximize total utility.
If a country's consumer price index (CPI) was 104.2 in Year 1, while the inflation rate for Year 2 was 4.89%, then the CPI in Year 2 was:
(a) 106.5; (b) 108.5; (c) 109.3; (d) 111.5.