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26-06-2024
Business

Answered

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 $1000. The firm has experienced:

a. economies of scale
b. economies of scope
c. diseconomies of scale
d. diseconomies of scope

Answer :

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