Calculation of Average Costs with Economies of Scope Crib World

question 57

Multiple Choice

Calculation of Average Costs with Economies of Scope Crib World is considering a merger with Tots Supply Stores. Crib's total operating costs of producing services are $250,000 for sales volume of $1.25 million. Tots' total operating costs of producing services are $210,000 for a sales volume (J_P) of $900,000. Calculate the average cost of production for the Crib and Tots firms, respectively.

• A) 20%, 23.33%
• B) 23.33%, 20%
• C) 27.78%, 16.8%
• D) 21.4%, 21.4%

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Definitions:

Functionalist

A perspective in sociology that views society as a complex system whose parts work together to promote solidarity and stability.

Davis-Moore Thesis

A social stratification theory that asserts that societal inequality and stratification are beneficial for optimizing a society's efficiency and functionality.

Max Weber

A German sociologist, philosopher, and political economist whose works are foundational in the field of sociology, particularly concerning the development of modern capitalist society, bureaucracy, and religion.

Social Inequality

The condition of having inequitable opportunities and benefits for various social roles or standings in a group or society.