When Jitters Coffee Company, Inc, can lower the cost of packaging a pound of coffee by doubling the quantity packaged each day, it is achieving
A) economies of scale.
B) economies of scope.
C) economies of team production.
D) all of the above
Question 2
John's utility of wealth curve is shown in the above figure. He currently has wealth of 20,000. If the state lottery offers a 1 in 10,000 chance of winning 10,000, John will
A) pay whatever price it takes to play.
B) pay 1 to play this game.
C) pay less than 1 to play this game.
D) not be willing to play this game at any price.
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