Economies of scope refer to:
A) changes in technology.
B) the very long run.
C) multiproduct firms.
D) single product firms that utilize multiple plants.
E) short-run economies of scale.

Question

Quizplus · Accepted Answer

Economies of scope occur when a firm can produce multiple products at a lower cost than if each product was produced separately by different firms. This is often seen in multiproduct firms, where the cost of producing one product can be offset by producing another and sharing resources such as labor, equipment, and facilities.

Economies of Scope Refer To