Question: When the cost of producing a unit of a good decreases as its output rate increases, there are economies of A) scale. B) scope.

When the cost of producing a unit of a good decreases as

When the cost of producing a unit of a good decreases as its output rate increases, there are economies of A) scale. B) scope. C) production. D) size.

Step by Step Solution

★★★★★

3.51 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

scale As the output rate increases the cost of producing each unit decreases This is due to economie... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

Calculate r2 for the least squares line in Exercise 11.14. In Exercise 11.14 The accompanying table is similar to Table 11.3. It is used to make the preliminary computations for finding the least...

Calculate r2 for the least squares line in each of the following exercises. Interpret their values. a. Exercise 11.10 b. Exercise 11.13 Exercise 11.10 The following table is similar to Table 11.2. It...

In fitting a least squares line to n = 10 data points, the following quantities were computed: a. Find the least squares line. b. Graph the least squares line. c. Calculate SSE. d. Calculate s2. e....

Refer to the XYZ Company case. From the corresponding exercise in Chapter 3, review the design of a spreadsheet that will allow an analyst to predict monthly cash needs and profitability for the...

A manufacturer of digital cameras estimates that when cameras are sold for x dollars apiece, consumers will buy 8,000e 0.02x cameras each week. He also determines that profit is maximized when the...

Below is financial information for Campus Fashion Inc. (The Company) for the year ended December 31, 2018 prepared by its inexperienced accountant. Campus Fashion Inc. Income Statement at December...

The capital requirement for producing 1 unit of cloth is 2, while 2 units of labor are needed for the same job. Likewise, for food, the unit capital requirement is 3, and the unit labor requirement...

True or False: 1. Consumer sovereignty describes how individual consumers in market economies determine what is to be produced. 2. Command economies rely on central planning, where decisions about...

A manufacturing plant produces two distinct products, A and B. The cost of producing one unit of A is $18 and that of B is $22. Assume that this plant incurs a weekly setup cost of $24,000 regardless...

A company manufactures two products on two machines. The number of hours of machine time and labor depends on the machine and product as shown in the file S13_43.xlsx. The cost of producing a unit of...

Write the differential dw in terms of the differentials of the independent variables. 4u+x y+z w=f(u,x,y,z) = dw=du + dx +dy+dz

With the communication device pointed toward your home planet, you realize, to your dismay, that the cords have been disconnected from the device. "Computer, how do I plug in these cables", you ask....

Linda intends to adopt the differentiation strategy for her new caf business in Singapore. What actions do you think Linda should take to make the strategy work and why? What do you think are the key...

Rockfest, an annual concert put on by Hard Rock. The concert lasts for 13 hours and is attended by over 100,000 fans. Planning for the event begins nine months ahead of time. Microsoft Project is...

If you were in Ivan's situation and weren't sure of how to provide accommodation for Keeton, what TWO options would be the best to use as resources? A. There are no resources for this B. A different...

f. Which has higher memory utilization in your device, the background/system processes or the application processes? Briefly explain the condition of processes in your device to support your answer....

Wiemers Corporations comparative balance sheets are presented below. WIEMERS CORPORATION Balance Sheets December 31 2017 2016 Cash $ 3,700 $ 3,400 Accounts receivable (net) 20,800 23,800 Inventory...

Wal-Mart is the second largest retailer in the world. The data file on the disk holds monthly data on Wal-Marts revenue, along with several possibly related economic variables. a) Using computer...

Assume we want to use three cooking times for popping the popcorn instead of two. List the possible treatment combinations that can be assigned. How many are there?

Use the data from Table 6.1 and define a benign cell as a success and round cells to be group 1. Calculate and interpret the relative risk and the odds ratio. Table 6.1 The numbers of benign and...

Create individual value plots of the eight possible factor-level groups listed in Table 4.1. a. Do you see any patterns in the PopRate among these groups? b. Does the spread of the responses within...

The following sample observations were randomly selected. Determine the correlation coefficient and interpret the relationship between x andy.

A school supervisor is reviewing initial wages of former students (in $000). Samples were taken over 3 years for four different majors (accounting, administration, finance, and marketing). For each...

A Buffalo, New York, cola distributor is featuring a super-special sale on 12-packs. She wonders where in the grocery store to place the cola for maximum attention. Should it be near the front door...