Author Question: A food truck operator originally produced hamburgers and hotdogs. To serve the tastes of their ... (Read 55 times)

olgavictoria · **on:** Jul 1, 2018

A food truck operator originally produced hamburgers and hotdogs. To serve the tastes of their various customers, the hot dog vendor decides to start producing turkey dogs and ham sandwiches as well. Since the new products were introduced, average costs rose dramatically. The vendor is experiencing
a. Economies of scale
b. Economies of scope
c. Diseconomies of scale
d. Diseconomies of scope

Question 2

In a coin toss bet, where both heads and tails are equally likely, you win a dollar on heads but lose a dollar on tails. The expected value of the bet is
a. 0.50
b. -0.50
c. 1.00
d. 0.00