Business cycles have variable timing and predictable structure.

​An airlines realizes that instead of offering free checked in baggage,they could put a charge on checked baggage without the demand for the tickets decreasing.The space saved can be used to carry priority mail packages,with hardly any additional costs.The airlines has realized

A) ​Economies of scale
B) Economies of scope
C) Diseconomies of scale
D) ​Diseconomies of scope

Given the cost formula, Y = $16,000 + $3.40X, total cost for an activity level of 4,000 units would be:

A) $13,600
B) $3,600
C) $29,600
D) $16,000