When It Is Cheaper for One Firm to Produce a Number

question 61

Multiple Choice

When it is cheaper for one firm to produce a number of different commodities together than it is for a group of small firms to produce those commodities, ____ exist(s) .

• A)economies of scale
• B)economies of scope
• C)diminishing marginal returns
• D)marginal cost pricing

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Definitions:

Rent-Seeking

Actions by individuals and groups designed to restructure public policy in a manner that will either directly or indirectly redistribute more income to themselves or the projects they promote.

Monopoly Power

The ability of a single seller or company to control the market price and supply of a product or service.

High-priced Rental

Property rental arrangements that are significantly more expensive than the average market rate.

Rent-seeking

Endeavors aimed at earning income by manipulating the economic environment rather than through trade and production of added value.