If a Firm Is Able to Lower Total Costs by Specializing

question 45

Multiple Choice

If a firm is able to lower total costs by specializing in marketing and distribution while outsourcing production, it is taking advantage of:

• A) less developed nations.
• B) economies of scope.
• C) economies of scale.
• D) technical efficiency.

---

Definitions:

Epinephrine

A hormone and neurotransmitter, also known as adrenaline, secreted by the adrenal glands, vital for the body's fight-or-flight response.

Blood Glucose Concentration

The measure of sugar levels in one's bloodstream, critical for regulating energy and metabolic processes.

Glucagon

A substance created by the pancreas that elevates blood sugar levels by encouraging the liver to convert glycogen into glucose.

Calcitonin

A hormone produced by the thyroid gland that lowers blood calcium levels by inhibiting bone resorption and promoting calcium excretion by the kidneys.