1. "Economies of scope" A. means that unit production costs rise as the level of production increases B. means that unit production costs fall as the level of production increases C. means that unit production costs are lower when different goods are produced by the same firm D. none of the above

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Elin HesselLv2

16 Nov 2018

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13. “Economies of scope" A. means that the unit cost of production falls as more of the product is produced B. derive from the existence of fixed costs, including expenditures on research and development, and from the physical characteristics of production processes C. derive from learning-by-doing D. none of the above

1. The law of diminishing marginal productivity states that

a. As you expand output, your marginal productivity eventually increases

b. As you expand output, your marginal productivity eventually declines

c. As you expand output, the total product eventually increases

2. What are economies of scale?

a. decreasing average costs as production increases

b. increasing average costs as production increases

c. increasing fixed costs as production increases

d. None of the above

3. What are economies of scope?

a. lower average costs when multiple different products are produced

b. higher average costs when multiple different products are produced

c. Constant average costs when multiple different products are produced

d. None of the above

4. It costs firm A $800 to produce five radios and it costs firm B $500 to produce five batteries. If Firm A merges with firm B, it can produce both the five radios and the five batteries for $1000. The firm has experienced

a. Economies of scale

b. Economies of scope

c. Diseconomies of scale

d. Diseconomies of scope

5. It costs firm A $800 to produce five radios and it costs firm B $500 to produce five batteries. If Firm A merges with firm B, it can produce both the five radios and the five batteries for $1500. The firm has experienced

a. Economies of scale

b. Economies of scope

c. Diseconomies of scale

d. Diseconomies of scope

rosecockroach755

12. Economies of scale A. means that unit production costs fall as production rises B. can constitute a barrier to the entry of new firms C. can provide a technological leadership advantage to innovators D. All of the above