If the Cost of Producing Two or More Outputs Jointly

question 97

Multiple Choice

If the cost of producing two or more outputs jointly is less than the cost of producing the outputs separately, _____.

• A) economies of scope are said to exist
• B) the firm's managers would not want to allow portfolio diversification
• C) economies of scale are said to exist
• D) the firm's shareholders would not want to allow portfolio diversification

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Definitions:

Independent Trucker

An independent trucker is a self-employed truck driver who operates their own trucking business, often contracting with companies to transport goods.

Owner-Operator

An individual who owns and operates their own business or equipment, particularly common in the trucking and logistics industries.

Electrical Systems

networks of electrical components connected together to carry out specific functions, such as in vehicles or buildings.

ASE Test

A certification exam administered by the National Institute for Automotive Service Excellence, aimed at identifying competent automotive technicians and service professionals.