Exploiting the economies of Scope

Bobby Lee’s dairy has gainfully expanded beyond butter, fresh milk and cheese, by providing Organizmic Fertilizer, guided by ATV tours for the visitors, and Granny Lee’s Exfoliating Body Yogurt. The Clyde County Business News trumpets that the Bobby Lee has beaten everybody to the punch by inventively exploiting: (1) Economies of scale via the product differentiation. (2) The natural monopoly place of the dairy industry. (3) The incentive to cheat on rest of the dairy cartel. (4) Economies of scope. (5) Diseconomies of scale by the spreading overhead.

Choose the right answer from the above options.

View Complete Question

Related Questions in Microeconomics

Q : Relative price and income inelasticity

Technological advances have raised agricultural productivity enormously among 1800 and nowadays, and therefore, the relative incomes of family farmers declined dramatically. There hardships endured through American farm families throughout this period

Q : Elasticity of Demand Elasticity of

Elasticity of Demand: The law of demand elucidates that demand will change due to a change in the price of the commodity. However it does not elucidate the rate at w

Q : Slope of indifference Curve State the

State the slope of indifference Curve? Answer: Slope of indifference curve is equivalent to MRS, that is, Marginal Rate of Substitution.

Q : Problem based on production

Refer to the given production possibilities curve and give answer of following question . At the onset of the Second World War the Soviet Union was already at full employment. Its economic adjustment from peacetime to wartime can best be described by the movemen

Q : Unitarily price elastic supply for

Supply is unitarily price elastic for all quantities and prices upon: (i) supply curve S1. (ii) supply curve S2. (iii) supply curve S3. (iv) supply curve S4. (v) supply curve S5.

Q : Structure-conduct-performance From

From roughly 1890 till 1970 year, the “structure-conduct-performance paradigm” controlled theories regarding how firms behave in various types of markets. The term “structure” in this expression refers to such

Q : Technology and resource costs I have a

I have a problem in economics on Technology and resource costs. Please help me in the following question. The short-run supply of macadamia nuts is considerably recognized by: (1) Preferences and tastes. (2) Technology and resource costs. (3) The number of consumers.

Q : Right-to-Work Laws I have a problem in

I have a problem in economics on Right-to-Work Laws. Please help me in the following question. The supporters of unions might complain that right to work laws frequently permit non-union workers to: (i) ‘Free-ride’ by enjoying the union-negotiated advantag

Q : Rule of thumb for office rent Is there

Is there any rule of thumb for office rent or on lease per gross income? If yes, then explain?

Q : Featherbedding-Labor Contracts The

The clauses in labor contracts that need continued employment of the workers whose jobs are technologically outdated are termed as: (1) Moth-balling. (2) Yellow dog contracts. (3) Featherbedding. (4) Goldbricking. (5) Shirking clauses.

Discover Q & A

Leading Solution Library

Avail More Than 1437207 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1921781
Asked

3,689

Active Tutors

1437207

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment