Producing 200 Units of Good Y and 100 Units of Good

question 111

Multiple Choice

Producing 200 units of good Y and 100 units of good X in the same factory costs the firm $50,000. In contrast, producing 200 units of good Y in one factory and 100 units of good X in another factory costs the firm $75,000. So, if the firm produces the two goods together, it achieves:

• A) quadratic returns to scale.
• B) diseconomies of scope.
• C) economies of scope.
• D) diseconomies of scale and diseconomies of scope.

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Definitions:

Despair

A feeling of utter hopelessness and defeat.

Organismic Perspective

An approach in psychology that views human beings as integrated wholes, emphasizing the interaction between all aspects of the individual's personality and the environment.

Phenomenological Position

A philosophical approach focusing on people's subjective experiences and interpretations of the world.

Phenomenal Field

The total personal perception of reality, including all experiences, influences, and perceptions that affect an individual's view of the world.