Economies of scope are generated when increasing production lowers the average cost of each unit produced.

Name: Economies of scope are generated when increasing production lowers the average cost of each unit produced.
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Question

Quizplus · Accepted Answer

Economies of scope occur when producing a variety of products together is more cost-effective than producing each one separately, not when increasing production lowers the average cost, which describes economies of scale.

Economies of Scope Are Generated When Increasing Production Lowers the Average