Question 1

Wood Working Company (WWC) can produce tables for a cost equal to C = 30 + qt or chairs for a cost equal to C = 30 + qc. However, the firm can also produce tables and chairs simultaneously for a cost equal to C = 50 + qc + qt. Does WWC experience economies of scope?

Accepted Answer

A)  Yes, with SC = t or chairs for a cost equal to C = 30 + qc. However, the firm can also produce tables and chairs simultaneously for a cost equal to C = 50 + qc + qt. Does WWC experience economies of scope? 
A)  Yes, with SC =   . 
B)  Yes, with SC =   . 
C)  No, with SC = -   . 
D)  No, with SC = 0." class="answers-bank-image d-inline" rel="preload" > .
B)  Yes, with SC = t or chairs for a cost equal to C = 30 + qc. However, the firm can also produce tables and chairs simultaneously for a cost equal to C = 50 + qc + qt. Does WWC experience economies of scope? 
A)  Yes, with SC =   . 
B)  Yes, with SC =   . 
C)  No, with SC = -   . 
D)  No, with SC = 0." class="answers-bank-image d-inline" rel="preload" > .
C)  No, with SC = - t or chairs for a cost equal to C = 30 + qc. However, the firm can also produce tables and chairs simultaneously for a cost equal to C = 50 + qc + qt. Does WWC experience economies of scope? 
A)  Yes, with SC =   . 
B)  Yes, with SC =   . 
C)  No, with SC = -   . 
D)  No, with SC = 0." class="answers-bank-image d-inline" rel="preload" > .
D)  No, with SC = 0.

Question 2

A specific tax of $1 per unit of output will affect a firm's

Accepted Answer

A)  average total cost, average variable cost, average fixed cost, and marginal cost.
B)  average total cost, average variable cost, and average fixed cost.
C)  average total cost, average variable cost, and marginal cost.
D)  marginal cost only.

Exam 7: Costs

A specific tax of $1 per unit of output will affect a firm's

Correct Answer
verified

Wood Working Company (WWC) can produce tables for a cost equal to C = 30 + q_tor chairs for a cost equal to C = 30 + q_c. However, the firm can also produce tables and chairs simultaneously for a cost equal to C = 50 + q_c + q_t. Does WWC experience economies of scope?

Correct Answer
verified

Exam 7: Costs

A specific tax of $1 per unit of output will affect a firm's

Correct AnswerverifiedShow Answer

Wood Working Company (WWC) can produce tables for a cost equal to C = 30 + qt or chairs for a cost equal to C = 30 + qc. However, the firm can also produce tables and chairs simultaneously for a cost equal to C = 50 + qc + qt. Does WWC experience economies of scope?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Wood Working Company (WWC) can produce tables for a cost equal to C = 30 + q_tor chairs for a cost equal to C = 30 + q_c. However, the firm can also produce tables and chairs simultaneously for a cost equal to C = 50 + q_c + q_t. Does WWC experience economies of scope?

Correct Answer
verified