Economies of Scope and Economies of Scale Both Relate to Lower

question 37

Multiple Choice

Economies of scope and economies of scale both relate to lower average cost but

• A)economies of scale refer to cost-advantage from higher volume of a single product.
• B)economies of scope refer to cost-advantage from spreading a common cost over multiple products.
• C)a and b.
• D)none of the above.

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Definitions:

Status Quo Bias

The preference for the current state of affairs, where changes are resisted even when better options are available.

Behavioral Economists

Economists who study the psychological, social, cognitive, and emotional factors influencing individuals' economic decisions.

Food Items

Various consumable goods meant for human nutrition, including raw, processed, and prepared products.

Framing Effects

Cognitive biases where people's decisions are influenced by the way information is presented, rather than the information itself.