_______ occur when the cost of producing two outputs is less than the sum of the costs incurred when producing each output individually.

Question

Quizplus · Accepted Answer

Economies of scope occur when producing two different products together results in cost savings compared to producing each product separately. This is different from economies of scale, which refer to cost savings achieved through producing a larger quantity of a single product. Diseconomies of scale and scope refer to cost increases that occur when a company grows too large or diversifies too much, respectively. None of the above is not the correct answer in this case, as there is a correct option.

_______ Occur When the Cost of Producing Two Outputs Is