Author Question: What are diseconomies of scope? a. the cost of producing two products jointly by one firm is more ... (Read 88 times)

arivle123

  • Hero Member
  • *****
  • Posts: 569
What are diseconomies of scope?
 a. the cost of producing two products jointly by one firm is more than the cost of producing them separately
  b. the cost of producing two products jointly by one firm is lesser than the cost of producing them separately
  c. the cost of producing two products jointly by one firm is equal to the cost of producing them separately
  d. none of the above

Question 2

Restricted Formulary Hospitals are big purchasers of pharmaceutical products and have to stock many different chemical entities. However, they increasingly do not stock all. Instead, they restrict their formularies to many of the treatments in a therapeutic class but consciously exclude a few. How does this help them negotiate?



ebe

  • Sr. Member
  • ****
  • Posts: 320
Answer to Question 1

a

Answer to Question 2

If they were to carry every drug in existence, every drug producer would know that their disagreement value was high. But because there is a chance that a specific drug will not be included in the formulary, every drug producer now faces a disagreement value of 0 . This improves the bargaining position of the hospital.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question


 

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Did you know?

Hyperthyroidism leads to an increased rate of metabolism and affects about 1% of women but only 0.1% of men. For most people, this increased metabolic rate causes the thyroid gland to become enlarged (known as a goiter).

Did you know?

Although the Roman numeral for the number 4 has always been taught to have been "IV," according to historians, the ancient Romans probably used "IIII" most of the time. This is partially backed up by the fact that early grandfather clocks displayed IIII for the number 4 instead of IV. Early clockmakers apparently thought that the IIII balanced out the VIII (used for the number 8) on the clock face and that it just looked better.

Did you know?

Cancer has been around as long as humankind, but only in the second half of the twentieth century did the number of cancer cases explode.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

For a complete list of videos, visit our video library