Author Question: A firm finds that it can produce several different goods at a lower average cost by using some of ... (Read 61 times)

geodog55 · **on:** Jun 29, 2018

A firm finds that it can produce several different goods at a lower average cost by using some of the same production facilities than it could if it produced each of the goods with separate production facilities. This firm is

A) gaining economies of scope.
B) gaining economies of team production.
C) gaining economies of scale.
D) incurring diseconomies of scale.

Question 2

A rise in the minimum wage increases the demand for union labor because this policy change

A) lowers the wage rate paid to union labor.
B) raises the productivity of union labor.
C) lowers the cost of a substitute for union labor.
D) raises the cost of a substitute for union labor.