If a Firm Experiences Economies of Scope

question 13

Multiple Choice

If a firm experiences economies of scope,

• A)its average cost falls as it increases output
• B)its average cost rises as it increases output
• C)average production costs fall when it produces more than one kind of product
• D)it should integrate vertically
• E)average production costs rise as it produces more kinds of products

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Definitions:

Personal Rapport

The process of building a close and harmonious relationship in which the people or groups involved understand each other’s feelings or ideas and communicate well.

Conciliator

A person who acts as a mediator or intermediary to help resolve conflicts or disputes.

Mediator

An impartial individual who assists in resolving disputes or conflicts between parties through communication and negotiation techniques.

Arbitrator

An autonomous individual or entity formally designated to resolve a conflict.