Bubba Burgers Has Discovered There Are Economies of Scope Available

question 109

Multiple Choice

Bubba Burgers has discovered there are economies of scope available to the restaurant. Which is most likely to be a response to this discovery?

• A) Bubba adds more varied inputs to burger production.
• B) Bubba expands burger production, focusing on that one good.
• C) Bubba contracts burger production.
• D) Bubba adds grilled chicken sandwiches to the menu.
• E) Bubba cuts back on the diversity of the menu.

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Definitions:

Inelastic

A characteristic of a good or service whose quantity demanded or supplied changes by a smaller percentage than changes in price.

Sensitive

Capable of perceiving with the senses or responsive to stimuli or changes in the environment.

Demand

The desire to purchase goods and services backed by the ability and willingness to pay a price.

Economic Theory

A set of principles that explain how economic processes work, guiding the analysis of economic behavior and decision-making.