June 2015

1:

It costs a firm Rs 90 per unit to produce product A, and Rs 60 per unit to produce B individually. If the firm can produce both products together at Rs 160 per unit of product A and B, this exhibits signs of:

A.

economies of scope

B.

diseconomies of scale

C.

diseconomies of scope

D.

economies of scale

 

Answer : C

Explanation :

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Option: A

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