A Firm Finds That It Can Produce Several Different Goods

question 279

Multiple Choice

A firm finds that it can produce several different goods at a lower average cost by using some of the same production facilities than it could if it produced each of the goods with separate production facilities. This firm is

• A) gaining economies of scope.
• B) gaining economies of team production.
• C) gaining economies of scale.
• D) incurring diseconomies of scale.

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Definitions:

Voluntary Control

The ability to consciously regulate one's actions, impulses, or bodily functions.

Secondary Gains

Benefits obtained from the symptoms of an illness, apart from the direct relief from those symptoms.

Pathophysiology

The study of the disordered physiological processes that cause, result from, or are otherwise associated with a disease or injury.