Economies of scope exist when
A) the total cost of production falls as the output increases.
B) a firm hires specialized resources to produce a range of goods and services.
C) a firm uses outsourcing to produce a good or service.
D) the cost of producing a unit of a good falls as its output increases.
B
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Two players are trying to maximize their payoffs in the matrix below: Player 2? Move AMove BPlayer 1Move A (50,20)(40,80)?Move B(25,80)(10,10)What is the Nash equilibrium?
A. Player 1 will Move A and Player 2 will Move A B. Player 1 will Move B while Player 2 will Move B C. Player 1 will Move A while Player 2 will Move B D. Player 1 will move B and Player 2 will Move B
If the PPF for guns and butter is bowed outward from the origin, this indicates constant opportunity cost between the two goods
a. True b. False Indicate whether the statement is true or false
The short-run shutdown rule is to shut down if:
A. P > AVC. B. P < ATC. C. P > ATC. D. P < AVC.
Amanda decides to buy a dress that Hillary has for sale; they both agree on a price of $20 for the exchange. Which of the following best describes who gains and who loses from the trade?
a. If the dress originally costs more than $20, Amanda gains and Hillary loses. b. If the dress originally costs less than $20, Hillary gains and Amanda loses. c. Both parties expect to gain from this transaction. d. If Hillary gains from the transaction, Amanda must lose an equal amount.