5. When fewer firms are better Which of the following is an example of economies

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5. When fewer firms are better Which of the following is an example of economies of scope? Coke makes a billion drinks per day at a lower average cost than if 1,000 soda companies made a million drinks per day. o It is more profitable for Dell to buy computer processors from Intel than to manufacture them itself. Walmart can transport goods and services at a lower cost than any of its retail competitors can A university begins offering night classes to working adults. The evening classrooms are also used by full-time students during the day Grade It Now Save & Continue

Explanation / Answer

Which of the following is an example of economies of scale?

Solution: A university begins offering night classes to working adults. The evening classrooms are also used by full-time students during the day.

Explanation: Economies of scale occurs when there is a proportionate saving in costs achieved with more level of production; and in this scenario the university is saving the cost with day and night work shifts

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