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:

Chromosomes

Threadlike structures made of DNA and protein that contain the genes, found in the nucleus of most living cells.

Longevity

The length of time that an individual lives or a thing lasts.

Hearing Loss

A reduction in the ability to hear sounds, which can range from mild to profound impairment.

Financially Secure

The state of having sufficient financial resources to meet needs and withstand unexpected financial demands.