Calculation of Average Costs with Economies of Scope Blinds N

question 98

Multiple Choice

Calculation of Average Costs with Economies of Scope Blinds N Such is considering a merger with Window Supply Stores.Blinds' total operating costs of producing services are $750,000 for sales volume of $6 million.Window's total operating costs of producing services are $100,000 for a sales volume (J_P) of $1 million.Calculate the average cost of production for the Blinds and Window firms,respectively.

• A)10 percent, 12.5 percent
• B)12.5 percent, 10 percent
• C)75 percent, 1.67 percent
• D)13.93 percent, 13.93 percent