The manager of Pretty Flowers Florist has realized that she is offering so many different kinds of floral arrangements that her total costs increase if she produces more of any kind of arrangement. This is an example of ________.

Question

Quizplus · Accepted Answer

The scenario describes a situation where the more of any one kind of arrangement produced, the higher the total costs, which is a characteristic of diseconomies of scope. This means that there is a point at which expanding the variety of arrangements offered is no longer efficient, and costs begin to outweigh benefits.

The Manager of Pretty Flowers Florist Has Realized That She