Author Question: Economies of scope has to do with lowering production costs by increasing the quantity of a product ... (Read 115 times)

wenmo · **on:** Jun 29, 2018

Economies of scope has to do with lowering production costs by increasing the quantity of a product produced, whereas economies of scale has to do with lowering production costs by producing several products within the same firm.

Indicate whether the statement is true or false

Question 2

If consumers spend their money only on beef and vegetables, then the substitution effect of an increase in the price of beef would result in consuming ________ beef and ________ vegetables.

A) more; more
B) less; fewer
C) more; fewer
D) less; more