If a Company Is Able to Use One Set of Inputs

question 88

Multiple Choice

If a company is able to use one set of inputs to produce a wider range of products and services,what is this ability called?

• A)economies of scale
• B)economy of advantage
• C)economy of scope
• D)economies of productivity

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Definitions:

Efficient Output

The level of production at which a firm or economy is producing at minimum average total cost, optimizing resource use.

Demand Curve

a graph showing the relationship between the price of a good and the quantity of that good which consumers are willing to purchase at various prices.

MR Curve

In economics, the Marginal Revenue curve shows how the revenue generated from selling one additional unit of a good or service changes with quantity sold.

MC = MR

This signifies the point where Marginal Cost equals Marginal Revenue, optimizing profit for a firm.