When It Is Cheaper for One Firm to Produce a Particular

question 50

Multiple Choice

When it is cheaper for one firm to produce a particular product, ____ exist(s) .

• A)economies of scale
• B)economies of scope
• C)diminishing marginal returns
• D)cross-subsidization

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Definitions:

Salesperson

An individual who sells goods or services, often working on commission or for an organization.

Poisson Random Variable

A variable that represents the number of times an event occurs in a fixed interval of time or space, following the Poisson distribution.

Discrete Integer

Refers to a type of numerical data that can only take specific, separated values and cannot be fractional.

Poisson Process

A statistical process that models the occurrence of events within a fixed interval of time or space, assuming that these events happen with a known constant mean rate and independently of the time since the last event.