A firewood supplier has a very seasonal demand for its product. Its transport trucks lay idle during the warmer parts of the year. It can exploit economies of scope if
a. It merges with a manufacturer of wooden Christmas ornaments
b. It turns into a rental trucking company during the warmer months for other seasonal producers such as ice-cream makers
c. It starts producing other seasonal products that would sell mostly during the warmer months such as rustic lawn chairs
d. B and C
d
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In Figure 17-4 above, the profit-maximizing quantity, in the absence of "menu costs," ________, with profit equal to ________
A) remains Y0, J + K B) remains Y0, H + K C) remains Y0, G + H + J + K D) falls to Y1, G + J E) falls to Y1, F + G + J
Exemptions are better off for the taxpayer than deductions _____
a. only in the case of housing-related tax preferences b. when itemizing deductions c. when taking the standard deduction d. for high-income taxpayers