Refer to figure above. The combination of outputs in the figure describes a situation in which: A) a company specializing in cars and another in tractors would generate the same output as a single company producing both. B) joint production has advantages that enable a single company to produce more cars and tractors with the same resources than would two companies producing each product separately. C) a direct relationship between economies of scale and economies of scope. D) a two-output firm can enjoy economies of scope only if its production process does not involve diseconomies of scale.
Refer to figure above. The combination of outputs in the figure describes a situation in which: A) a company specializing in cars and another in tractors would generate the same output as a single company producing both. B) joint production has advantages that enable a single company to produce more cars and tractors with the same resources than would two companies producing each product separately. C) a direct relationship between economies of scale and economies of scope. D) a two-output firm can enjoy economies of scope only if its production process does not involve diseconomies of scale.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Refer to figure above. The combination of outputs in the figure describes a situation in which:
A) a company specializing in cars and another in tractors would generate the same output as a single company producing both.
B) joint production has advantages that enable a single company to produce more cars and tractors with the same resources than would two companies producing each product separately.
C) a direct relationship between economies of scale and economies of scope.
D) a two-output firm can enjoy economies of scope only if its production process does not involve diseconomies of scale.
Transcribed Image Text:Number
of
tractors
Number of cars
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