Economies of Scope

question 33

Multiple Choice

Economies of scope:

• A)are related to the average cost of producing a good when you double the scale of output.
• B)are higher the more specialized a firm is in production.
• C)means the rotation of the long-run total cost curve in a downward direction.
• D)are a production characteristic in which the total cost of producing given quantities of two goods in the same firm is less than the total cost of producing those quantities in two single-product firms.

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Definitions:

Free Choice

The ability or power to make decisions autonomously without external constraints or coercion.

Spreading Alternatives

A cognitive phenomenon where individuals devalue rejected alternatives to feel better about the choices they have made.

Self-Verification

The desire and tendency of individuals to seek confirmation of their self-concept, whether positive or negative, from their social environment.

Negative Views

Pessimistic or unfavorable opinions or beliefs about something or someone.