ABC Co Produces Only Gadgets, and XYZ Co

question 105

Multiple Choice

ABC Co. produces only gadgets, and XYZ Co. produces both gadgets and widgets. If ABC Co. produces gadgets at the same average total cost as XYZ Co., economies of:

• A) scope are present in ABC.
• B) scale are present in ABC.
• C) scale are not present in XYZ.
• D) scope are not present in XYZ.

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Definitions:

Null Hypothesis

A hypothesis that states there is no difference or effect, serving as the default assumption to test against in statistical hypothesis testing.

Alternative Hypothesis

A statistical hypothesis that proposes a difference or effect, contrasting the null hypothesis.

Expected Frequencies

The anticipated counts in each category of a contingency table assuming no association between the variables.

Null Hypothesis

A hypothesis used in statistics that proposes no significant difference or effect.