The equation below gives the degree of economies of scope (SC):
SC = (C(Q1 ) + C(Q2 ) - C(Q1,Q2 )) / C(Q1,Q2 )
where C(Q1 ) is the cost of producing output Q1, C(Q2 ) is the cost of producing output Q2, and C(Q1,Q2 ) is the joint cost of producing both outputs. If SC is negative:
A) there are neither economies nor diseconomies of scope.
B) there are economies of scope.
C) there are diseconomies of scope.
D) there are both economies and diseconomies of scope.
C
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Real GDP per person is not an accurate measure of the standard of living because it ______
A. includes the goods and services that governments buy B. omits the goods and services that people produce for themselves C. includes goods and services bought by firms D. omits the goods and services imported from other countries
Because suppliers can more readily adjust their output in the long run than in the short run, we expect price elasticity of supply to be
a. negative in the long run and positive in the short run b. positive in the long run and negative in the short run c. greater than one in the short run and less than one in the long run d. higher in the long run than in the short run e. higher in the short run than in the long run