Economies of Scope Exist When

question 346

Multiple Choice

Economies of scope exist when

• A) the total cost of production falls as the output increases.
• B) a firm hires specialized resources to produce a range of goods and services.
• C) a firm uses outsourcing to produce a good or service.
• D) the cost of producing a unit of a good falls as its output increases.

---

Definitions:

Unconditioned Stimulus

A stimulus that naturally and automatically triggers a response without prior learning or conditioning.

Conditioned Stimulus

In classical conditioning, a previously neutral stimulus that, after becoming associated with the unconditioned stimulus, triggers a conditioned response.

Neutral Stimulus

A stimulus that initially produces no specific response other than focusing attention, until it is paired with an unconditioned stimulus.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with the unconditioned stimulus, eventually comes to trigger a conditioned response.