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:

Probability

A measure of the likelihood of a given event occurring, often expressed as a number between 0 and 1.

Mutually Exclusive

Events or propositions that cannot both be true or occur at the same time, implying the occurrence of one event excludes the occurrence of the other.

P(A)

The probability of event A occurring.

P(B)

The probability of event B occurring.