Generally, Economies of Scope Are Present When

question 76

Multiple Choice

Generally, economies of scope are present when:

• A) economies of scale are present in the production of two or more goods.
• B) economies of scale are constant in the joint production of two products.
• C) joint output is less from a single firm than could be achieved from two different firms each producing a single product (assuming equivalent production inputs in both situations).
• D) joint output is greater from a single firm producing two goods than could be achieved by two different firms each producing a single product (assuming equivalent production inputs in both situations).

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Definitions:

Latent Learning

Learning that occurs without any obvious reinforcement at the time but that is apparent in a later situation.

Drive Reduction

A theory in psychology that explains behavior as driven by the need to reduce internal tensions caused by unmet biological needs.

Incentives Necessary

The concept that motivation or behavior is influenced by a reward or incentive.

Ongoing Behavior

Behavior that is currently in process, continuing over a period of time.