Identify the Correct Statement

question 121

Multiple Choice

Identify the correct statement.

• A)Economies of scope are unrelated to economies of scale.
• B)Economies of scope imply economies of scale,but not vice versa.
• C)Economies of scope imply economies of scale,and vice versa.
• D)Economies of scope usually imply diseconomies of scale.

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Definitions:

Market Entry

The process by which a firm enters into a new market to compete and offer goods or services.

Price Falls

A decrease in the monetary value or market price of goods, services, or assets.

Producer Surplus

the difference between what producers are willing to accept for a good or service versus what they actually receive, due to higher market prices.

Market Entry

The act of beginning to sell goods or services in a new market.