If a firm experiences economies of scope, per unit production costs fall as it produces more than one kind of product.

Name: If a firm experiences economies of scope, per unit production costs fall as it produces more than one kind of product.
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Question

Quizplus · Accepted Answer

Economies of scope occur when producing multiple products allows a firm to share resources and reduce costs. Therefore, per unit production costs decrease as the firm produces more than one type of product.

If a Firm Experiences Economies of Scope, Per Unit Production