Economies of scope exist when the production of one good is less costly because other related goods already are being produced.
Answer the following statement true (T) or false (F)
True
See the definition of economics of scope in the textbook.
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When the pricing of one product produced by a firm adversely affects the revenue earned by another product of the same firm, the second product has been
A) cannibalized. B) tied. C) bundled. D) sacrificed.
Aggregate supply is defined as
A. how much the economy can produce at zero unemployment. B. an amount of output the economy will produce at full employment. C. the relationship between the expenditures schedule and the leakages schedule. D. the relationship between the price level and the quantity of real GDP supplied.
Suppose the Fed purchases $100 million of U.S. securities from security dealers. If the reserve requirement is 20 percent, the currency holdings of the public are unchanged, and banks have zero excess reserves both before and after the transaction, the total impact on the money supply will be a:
A. $100 million decrease in the money supply. B. $100 million increase in the money supply. C. $200 million increase in the money supply. D. $500 million increase in the money supply.
Suppose that there are only two types of used cars, peaches and lemons and that used cars are pure experience goods. Peaches are worth $10,000, and lemons are worth $6,000. Three fourths of all used cars are peaches, and one fourth are lemons
In a market with no signals, for instance, a market without warranties, the average value of cars actually sold will be A) $6,000. B) $7,000. C) $9,000. D) $10,000.