Which of the Following Best Defines "Economies of Scope

question 56

Multiple Choice

Which of the following best defines "economies of scope"?

• A) As output expands the cost of producing a good decreases.
• B) As output expands the cost of producing a unit of a good decreases.
• C) Because firms use specialized resources to produce a range of goods, as the number of products produced increases, the cost of producing a unit decreases.
• D) Costs increase as firms seek to find more consumers.

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Definitions:

Net Inflow

The difference between the total value of what enters a country, region, or market and the total value of what exits, typically measured over a specific period of time.

Cumulative Total Product

The total output produced by a firm after all units of inputs have been employed, illustrating the overall productivity.

Wage Rate

The amount of compensation paid to an employee by an employer in exchange for performing a job, usually expressed on an hourly, daily, or piecework basis.

Zinnia

A genus of plants within the sunflower tribe, known for their vibrant flowers and commonly grown in gardens for decorative purposes.