Answer: b. Economies of Scope
Explanation:
Economies of Scope refers to a situation where a company is able to reduce the cost of producing two or more goods by combining their production thereby leading to savings in the production process.
Economies of Scope in effect points out that there are some goods that when produced in tandem with another, lead to a cost reduction which means that its savings is <em>based on variety</em>.
Goods that usually achieve Economies of Scope are goods that are compliments, produced by similar methods or use similar inputs for production.
Firm A merging with Firm B produced the 5 radios and batteries cheaper so the new company is experiencing Economies of Scope.
Transactions involving the purchase and sale of fixed assets would be considered INVESTING activities.
Investing activities refers to those activities carried out by the company which involve sales or purchases of fixed assets such as building and equipment.
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sorry I couldn’t answer
Answer:
can u show the case study
Answer:
The answer is TRUE.
According to the law of increasing costs, the cost of producing kiwis will increase.
Explanation:
The law of increasing costs states that as more factors of production are shifted from making one product or service to a second product or service, the cost of producing the second item increases.
As we can see in the scenario given above, the community of Desertville initially produced a small amount of Kiwi fruit. But as kiwis became more popular, its cultivation had to be expanded, therefore, increased costs would be incurred in the process of this expansion.