Which of the Following Is an Example of a Producer

question 16

Multiple Choice

Which of the following is an example of a producer taking advantage of economies of scope?​

• A)A farmer buying more land so that he can produce more soybeans
• B)GM closing a Chevy truck plant in response to a decline in demand for trucks
• C)Disney World staying open later to serve more customers per day
• D)A dairy farmer producing cow's milk and butter
• E)A mouthwash firm expanding production by improving managerial efficiency

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Definitions:

Producer Surplus

The discrepancy between what producers anticipate accepting for a good or service and what they end up being paid.

Imported Units

Refer to products or goods brought into a country from another for sale or use.

Total Surplus

The combined total of consumer and producer surplus, signifying the overall net advantage to society derived from a market transaction.

Tariff Revenue

Income that a government earns from imposing tariffs on imported goods.