Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately.

Question

Quizplus · Accepted Answer

Economies of scope refer to the cost savings that a firm can achieve by producing a variety of products together rather than separately. This is because the same resources, such as equipment and labor, can be used to produce multiple products, resulting in lower production costs per unit.

Economies of Scope Reflect the Ability to Produce Multiple Products