Money lowers the transaction cost when:
a. the economy is experiencing rapid inflation.
b. its value is stable

After sugar refiner has produced fine sugar for baking purposes, what is left over is used to produce molasses. This technology exhibits

a. Economies of scale b. Economies of scope c. Diseconomies of scale d. Diseconomies of scope

If the marginal cost of flying the next flight is zero and one passenger is on the plane and has paid $50,

A) fixed cost would still be covered. B) the passenger should be given a bus ticket. C) losses would get bigger. D) the next flight should be flown.