13. Which of the following business combinations likely exhibit economies of sco
ID: 1156461 • Letter: 1
Question
13. Which of the following business combinations likely exhibit economies of scope? ( Please provide a reason why you chose that option why not other options)
A) Banking services for individuals and banking services for other business
B) Retail clothing stores and electronic (internet) clothing sales
C) Hospitals that perform heart surgery and hospitals that perform cosmetic surgery
D) all of the above
14. A cubic cost function implies:
A) linear average fixed cost curve.
B) linear marginal cost curve.
C) a U-shaped marginal cost curve.
D) all of the above
( Please provide a reason why you chose that option why not other options)
Explanation / Answer
13.Economies of scope are economic factors that make production in bulk cheaper than producing each unit of output separately.
A and C has to be produced separately but clothes can be produced in bulk and the cost of production falls when clothes are produced in bulk
Answer-B
14.Cubic function is in the form of-aX^3-bX^2+cX.Cubic functions are generally Used or inverted U shaped.Linear curves are straight lines upward or downward sloping.Thus, answer-D
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.