The variety of Riverside Ranger logo T-shirts includes 12 different designs. Setup between designs takes one hour

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The variety of Riverside Ranger logo T-shirts includes 12 different designs. Setup between designs takes one hour (and $18,000), and, after setting up, you can produce 1,000 units of a particular design per hour (at a cost of $8,000). Does this production exhibit scale economies or scope economies?

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Managerial Economics A Problem Solving Approach

ISBN: 978-1133951483

3rd edition

Authors: Luke M. Froeb, Brian T. McCann, Mikhael Shor, Michael R. War

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