Question Details

Economies of Scope refers to situations where per unit costs 

1.	The combinations of inputs costing a constant C dollars is called:
Answer
A.	an isocost line
B.	an isoquant curve
C.	the MRTS
D.	an isorevenue line

2.	____ are defined as costs which are incurred regardless of the alternative action chosen in a decision-making problem.
Answer
A.	Opportunity costs
B.	Marginal costs
C.	Relevant costs
D.	Sunk costs

3.	According to the theory of cost, specialization in the use of variable resources in the short-run results initially in:
Answer
A.	decreasing returns and declining average and marginal costs
B.	increasing returns and declining average and marginal costs
C.	increasing returns and increasing average and marginal costs
D.	decreasing returns and increasing average and marginal costs

4.	If TC = 321 + 55Q - 5Q2, then average total cost at Q = 10 is:
Answer
A.	10.2
B.	102
C.	37.1
D.	371
E.	321

5.	Economies of Scope refers to situations where per unit costs are:
Answer
A.	Unaffected when two or more products are produced
B.	Reduced when two or more products are produced
C.	Increased when two or more products are produced
D.	Demonstrating constant returns to scale
E.	Demonstrating decreasing returns to scale



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