Which of the following is the best example of economies of scope?

The following information is provided for Tony Romos Show more LE 1 Steaks are classified as a(n): Table 1 The following information is provided for Tony Romos income and expenditures. Quantity Purchased Per Month Quantity Purchased Per Month Quantity Purchased Per Month Monthly Income Steaks Steaks Pizzas $ 2000 2 2 8 $ 3000 4 4 6 Select one: a. Normal good b. Positive good c. Inferior good d. Marginal good e. None of the above Question 12 Not yet answered Marked out of 6.00 Flag question Question text In TABLE 1 Tonys income elasticity of demand for pizzas is: Table 1 The following information is provided for Tony Romos income and expenditures. Quantity Purchased Per Month Quantity Purchased Per Month Quantity Purchased Per Month Monthly Income Steaks Steaks Pizzas $ 2000 2 2 8 $ 3000 4 4 6 Select one: a. 0 b. Less than zero c. Greater than 1.0 d. 1.0 e. None of the above Question 13 Answer saved Marked out of 6.00 Flag question Question text The marginal product of the variable input: Select one: a. is always positive b. typically falls then rises c. is equal to the total product divided by the total amount of the variable input employed d. all of the above e. none of the above Question 14 Not yet answered Marked out of 6.00 Flag question Question text A firm using two inputs X and Y is using them in the most efficient manner when Select one: a. MPx = MPy b. Px = Py and MPx = MPy c. MPx/Py = MPy/Px d. MPx/MPy = Px/Py e. None of the above Question 15 Not yet answered Marked out of 6.00 Flag question Question text Assume a firm employs 10 workers and pays each $15 per hour. Further assume that the MP of the 10th worker is 5 units of output and that the price of the output is $4. According to economic theory in the short run Select one: a. the firm should hire additional workers b. the firm should reduce the number of workers employed c. the firm should continue to employ 10 workers d. More information is required to answer this question e. None of the above Question 16 Not yet answered Marked out of 6.00 Flag question Question text Suppose that Q = K1/2L1/2 w = $2 and r = $2. The combination of inputs that minimizes the cost of producing 2000 units and the total cost are: Select one: a. K* = L* = 2000 TC = $8000 b. K* = L* = 1000 TC = $6000 c. K* = L* = 1000 TC = $5000 d. K* = L* = 2000 TC = $2000 e. More information is required to answer this question Question 17 Not yet answered Marked out of 6.00 Flag question Question text Assuming the existence of economies of scale if a firm finds that it can reduce its unit cost by decreasing its scale of production it means that Select one: a. it has too much production capacity relative to its demand. b. it should try to produce less. c. the law of diminishing returns has not taken effect. d. it has too much fixed overhead relative to its variable cost. e. none of the above. Question 18 Not yet answered Marked out of 6.00 Flag question Question text Which of the following is the best example of economies of scope? Select one: a. Coca-Cola expands its global operations to sub-Sahara Africa. b. Alcohol for car fuel is produced from corn. c. Amazon.com decides to rent out its Web site to independent e-commerce companies. d. A company reduces its cost by getting bigger discounts for bulk purchases. e. None of the above. Question 19 Not yet answered Marked out of 6.00 Flag question Question text Suppose that the rent that a firm pays on the building that it leases decreases. How would this affect this firms marginal average and average variable cost curves? Select one: a. ATC decreases but MC and AVC are unchanged. b. MC AVC and ATC increase. c. MC AVC and ATC decrease. d. ATC increases but not MC or AVC. e. None of the above. Question 20 Not yet answered Marked out of 6.00 Flag question Question text Suppose that TC = 20000 + 10 Q. Which of the following are the correct MC and AVC? Select one: a. MC =10 AVC = 10. b. MC =10 AVC = 12. c. MC = 10 AVC = 20 d. MC = 10 AVC = 30 e. None of the above. Show less

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