Calculation of Average Costs with Economies of Scope Jewelry Designs

question 106

Multiple Choice

Calculation of Average Costs with Economies of Scope Jewelry Designs is considering a merger with Beads Supply Stores. Jewelry's total operating costs of producing services are $300,000 for sales volume of $2 million. Beads' total operating costs of producing services are $125,000 for a sales volume (J_P) of $2.25 million. Calculate the average cost of production for the Jewelry and Beads firms, respectively.

• A) 15%, 5.56%
• B) 5.56%, 15%
• C) 15%, 55.56%
• D) 13.33%, 6.25%

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Definitions:

Stimuli

Elements in the environment that can evoke a response from organisms.

Cognitive Therapy

A multistep approach developed for treating individuals with depression. First, individuals identify dysfunctional thoughts and maladaptive assumptions that may be causing unpleasant emotions. Second, several techniques are used to counteract the debilitating thoughts or dysfunctional assumptions contributing to the emotional distress. Third, individuals complete assignments that require practicing appropriate thoughts and behaviors.

Rational-emotive Therapy

A form of cognitive-behavioral therapy founded by Albert Ellis that aims to identify and change irrational beliefs and attitudes.

Stress Inoculation Training

A psychological therapy that helps individuals prepare for and manage stressful situations through practicing coping skills.