Which of the following is the best example of economies of scope? ...

[s.tung]

Which of the following is the best example of economies of scope?
 
  A) Coca-Cola expands its global operations to sub-Sahara Africa.
  B) Alcohol for car fuel is produced from corn.
  C) Amazon.com decides to rent out its Web site to independent e-commerce companies.
  D) A company reduces its cost by getting bigger discounts for bulk purchases.

Question 2

Why can't all goods be inferior?
 
  What will be an ideal response?

[nmyers]

Answer to Question 1

C

Answer to Question 2

If all goods were inferior, an increase in income would lead to a decline in the quantity demanded for all goods. This, however, would leave the consumer below the budget line and therefore not achieving the highest utility possible.

[s.tung]

Gracias!

[Laurenleakan]

Excellent