Generally, economies of scope are present when:
A) economies of scale are present in the production of two or more goods.
B) economies of scale are constant in the joint production of two products.
C) joint output is less from a single firm than could be achieved from two different firms each producing a single product (assuming equivalent production inputs in both situations).
D) joint output is greater from a single firm producing two goods than could be achieved by two different firms each producing a single product (assuming equivalent production inputs in both situations).

Question

Quizplus · Accepted Answer

Economies of scope exist when a single firm can produce two or more products more efficiently than two separate firms producing each product separately. This means that the joint output is greater from a single firm producing two goods than could be achieved by two different firms each producing a single product (assuming equivalent production inputs in both situations), which is option D.

Generally, Economies of Scope Are Present When