Figure 7.5.1
-When a product transformation curve is bowed outward, there are ________ in production.
A) economies of scope
B) economies of scale
C) diseconomies of scope
D) diseconomies of scale
E) none of the above

Question

Figure 7.5.1
-When a product transformation curve is bowed outward, there are ________ in production.
A) economies of scope 
B) economies of scale 
C) diseconomies of scope 
D) diseconomies of scale 
E) none of the above

Quizplus · Accepted Answer

When a product transformation curve is bowed outward, it indicates that there are economies of scope, meaning that producing a variety of products is more efficient than specializing in a single product. This is because shared inputs or processes reduce the total cost of production.

Figure 7.5.1 -When a Product Transformation Curve Is Bowed Outward, There Are