Suppose the Cost of Producing Two Goods,x and Y,can Be

question 71

Multiple Choice

Suppose the cost of producing two goods,x and y,can be represented as C = ax + by + cxy.If there are diseconomies of scope,then which of the following must be TRUE?

• A) a = b
• B) a + b = -c
• C) c > 0
• D) c < 0

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Definitions:

Minimum Required Rate Of Return

The lowest acceptable return on an investment, determined by an investor's or company's risk tolerance.

Average Operating Assets

Refers to the average value of the assets employed in a business's operations over a certain period of time, used to assess operational efficiency and return on investment.

Sales

The revenue generated from goods or services provided by a company to its customers.

Turnover

The total revenues or sales achieved by a company in a specified period, or the rate at which inventory is sold and replaced.