Refer to the Information Provided in Figure 7

question 47

Multiple Choice

Refer to the information provided in Figure 7.2 below to answer the question(s) that follow. Figure 7.2
-Refer to Figure 7.2. The average product with two workers is ________ lawns mowed.

• A) 4
• B) 5
• C) 5.5
• D) 11

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Definitions:

Economies of Scope

Cost advantages that enterprises obtain through the diversification of production, by producing multiple products using the same operations or inputs.

Diversification Strategies

Business approaches to entering new markets or industries to reduce reliance on a single market or product line.

Economies of Scale

The cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.

Economies of Scope

Practices enabling a company to efficiently produce a wider variety of goods or services.