Suppose the Cost of Producing Two Goods,x and Y,can Be

question 53

Multiple Choice

Suppose the cost of producing two goods,x and y,can be represented as C = ax + by + cxy.If there are economies of scope,then which of the following must be TRUE?

• A) c > 0
• B) a + b = -c
• C) c = 0
• D) c < 0

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Definitions:

Domain-general Adaptation

A concept referring to the ability or process of adjusting or conforming across various areas or situations, not limited to a specific field or domain.

Controlled Process

A type of cognitive processing that requires deliberate, effortful attention and is often contrasted with automatic processes.

Adaptations

Attributes that improve an individual’s prospects for survival and reproduction.

Social Tendencies

Inherent inclinations or predispositions in individuals to behave in certain ways in social contexts, influenced by societal norms and personal experiences.