Economies of Scope a Survey of a Local Market Provided

question 82

Multiple Choice

Economies of Scope A survey of a local market provided the following average cost data: Johnson Construction Corp.(JCC) has assets of $5 million and an average cost of 15 percent; Anderson Architects (AA) has assets of $8 million and an average cost of 20 percent; Cole Home Builders (CHB) has assets of $8 million and an average cost of 17 percent.For each firm,average costs are measured as a proportion of assets.JCC is planning to acquire AA and CHB with the expectation of reducing overall average costs by eliminating the duplication of services.
What should be the average cost after the acquisition for JCC to justify this merger?

• A)17.667 percent or lower
• B)17.667 percent or higher
• C)17.333 percent or lower
• D)15.00 percent or lower

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Definitions:

Mindfulness

Being aware of your thoughts and feelings without becoming attached to them.

Low Autonomy

A state or condition characterized by a lack of independence or freedom to make one's own decisions or choices.

Anxiety And Depression

A mental health condition characterized by feelings of intense worry, sadness, or fear, often accompanied by physical symptoms.

Autonomy

Having control over your actions and life.