If a firm experiences economies of scope,
a. its average cost falls as it increases output
b. its average cost rises as it increases output
c. average production costs fall when it produces more than one kind of product
d. it should integrate vertically
e. average production costs rise as it produces more kinds of products
C
You might also like to view...
Which of the following changes does NOT shift the long-run aggregate supply curve?
A) a decrease in the labor force B) a fall in the price level C) a rise in number of college graduates in the labor force D) a tax hike that reduces the capital stock
Although the Federal Reserve had traditionally made discount loans only to commercial banks, in response to the financial crisis in 2008 the Fed made ________ eligible for discount loans as well
A) savings banks B) primary dealers C) the Treasury Department D) mortgage brokers