Figure 7.5.1 -When a Product Transformation Curve Is Bowed Outward, There Are

question 54

Multiple Choice

Figure 7.5.1
-When a product transformation curve is bowed outward, there are ________ in production.

• A) economies of scope
• B) economies of scale
• C) diseconomies of scope
• D) diseconomies of scale
• E) none of the above

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Definitions:

Special One-time Order

An order that is not usual and is not expected to recur in the foreseeable future, often at a negotiated price different from regular orders.

Variable Selling

Costs related to selling that vary with the level of sales activity, such as commissions or shipping charges.

Production Capacity

The maximum output that a business can produce in a given period under normal working conditions.

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not vary with the level of production, such as rent, salaries, and insurance.