For a given pair of production outputs, the degree of economies of scope:
A) is constant across different output levels.
B) only increases as the level of output increases.
C) may increase or decrease with output.
D) will always tend to zero as output becomes very large.

Question

Quizplus · Accepted Answer

The degree of economies of scope may increase or decrease with output. It is not a constant across different output levels or guaranteed to always increase with output. Additionally, it may not necessarily tend to zero as output becomes very large.

For a Given Pair of Production Outputs, the Degree of Economies