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Wood Working Company (WWC)can Produce Tables for a Cost Equal

Question 114

Multiple Choice

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?


A) Yes, with SC = Wood Working Company (WWC) can produce tables for a cost equal to C = 30 + q<sub>t</sub><sub> </sub>or chairs for a cost equal to C = 30 + q<sub>c</sub>. However, the firm can also produce tables and chairs simultaneously for a cost equal to C = 50 + q<sub>c</sub> + q<sub>t</sub>. Does WWC experience economies of scope? A) Yes, with SC = . B) Yes, with SC = . C) No, with SC = - . D) No, with SC = 0. .
B) Yes, with SC = Wood Working Company (WWC) can produce tables for a cost equal to C = 30 + q<sub>t</sub><sub> </sub>or chairs for a cost equal to C = 30 + q<sub>c</sub>. However, the firm can also produce tables and chairs simultaneously for a cost equal to C = 50 + q<sub>c</sub> + q<sub>t</sub>. Does WWC experience economies of scope? A) Yes, with SC = . B) Yes, with SC = . C) No, with SC = - . D) No, with SC = 0. .
C) No, with SC = - Wood Working Company (WWC) can produce tables for a cost equal to C = 30 + q<sub>t</sub><sub> </sub>or chairs for a cost equal to C = 30 + q<sub>c</sub>. However, the firm can also produce tables and chairs simultaneously for a cost equal to C = 50 + q<sub>c</sub> + q<sub>t</sub>. Does WWC experience economies of scope? A) Yes, with SC = . B) Yes, with SC = . C) No, with SC = - . D) No, with SC = 0. .
D) No, with SC = 0.

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