In the short run a decrease in the costs of production makes

Is the cost of an all-volunteer army in the United States higher or lower than the cost of a conscripted (drafted) army?

A) Higher, unless the citizens are exceptionally patriotic B) Lower, unless the army is inefficiently managed C) Higher to taxpayers but lower to military personnel D) The same because the wage will move to the market-clearing level E) We cannot say without knowing the supply of and demand for military personnel.

Economies of scope exist when a business becomes more efficient by

A) offering fewer services. B) offering more services. C) becoming larger. D) becoming smaller.