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Microsoft found that instead of producing a DVD player and a gaming system separately, it is cheaper to incorporate DVD playing capabilities in their new version of the gaming system. Microsoft is taking advantage of
economies of scope
Average costs curves initially fall
due to declining average fixed costs
A security system company’s total production costs depend on the number of systems produced according to the following equation: Total Costs=$10,000,000+$2000*quantity produced. Given these data, which of the following is a false statement?
these are diseconomies of scale
According to the law of diminishing marginal returns, marginal returns
diminish eventually
Once marginal cost rises above the average cost,
average costs will increase
