______ Occur When a Single Firm Can Produce Two or More

question 23

Multiple Choice

______ occur when a single firm can produce two or more products more cheaply than can two separate firms.

• A) Economies of scale
• B) Economies of scope
• C) Diseconomies of scale
• D) Increasing returns to scale

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Definitions:

FASB Justifications

Rationales and explanations provided by the Financial Accounting Standards Board for its accounting standards and practices.

Carrying Value

Also known as book value, it's the value of an asset or liability according to a company's balance sheet, factoring in depreciation and amortization.

Economic Benefits

The gains received by individuals or organizations from their economic activities.

Verifiability

A principle ensuring that financial information can be checked for accuracy, reliability, and impartiality by independent observers.