Economies of Scope

question 44

Multiple Choice

Economies of scope

• A) are related to the average cost of producing a good when you double the scale of output.
• B) are higher the more specialized a firm is in production.
• C) means the rotation of the long-run total cost curve in a downward direction.
• D) are a production characteristic in which the total cost of producing given quantities of two goods in the same firm is less than the total cost of producing those quantities in two single-product firm.

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Definitions:

Outside Contractors

Third-party individuals or companies hired to perform specific tasks or services that are not handled by the organization's internal staff.

Organizational Design

The process of structuring and aligning an organization's architecture, including its systems, processes, and positions, to achieve its goals.

Organizational Structures

The systems of roles, responsibilities, and authority within a company, determining how activities and resources are coordinated and managed.

Mission and Objectives

The fundamental purpose and goals that guide an organization, providing a direction for its actions and decision-making processes.