Author Question: It costs firm A 800 to produce five radios and it costs firm B 500 to produce five batteries. If ... (Read 72 times)

Charlie · **on:** Jul 1, 2018

It costs firm A 800 to produce five radios and it costs firm B 500 to produce five batteries. If Firm A merges with firm B, it can produce both the five radios and the five batteries for 1500 . The firm has experienced
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 3 on heads but lose 1 on tails. The expected value of the bet is
a. 0.50
b. -0.50
c. 1.00
d. 0.00