Which of the Following Is True Regarding the Relationship Between

question 135

Multiple Choice

Which of the following is true regarding the relationship between returns to scale and economies of scope?

• A) A firm experiencing economies of scope must also experience increasing returns to scale.
• B) Economies of scale and economies of scope must occur together.
• C) A firm experiencing increasing returns to scale must also experience economies of scope.
• D) There is no definite relationship between returns to scale and economies of scope.

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Definitions:

Free Flow

An efficient or unobstructed movement or progress, commonly referred to in the context of ideas, goods, traffic, or energy.

Common European Currency

The Euro, which is the official currency used by the majority of countries within the European Union.

Political Risks

The potential for losses or uncertainties in business operations due to political decisions, conditions, or changes in a country.

Higher Productivity

An increase in the efficiency of production, often through better utilization of resources, leading to greater output for the same amount of input.