The merged firm's ability to generate synergistic cost savings through the joint use of inputs in producing multiple products is referred to as:
A) economies of scale.
B) economies of scope.
C) x-efficiencies.
D) none of the options.

Question

Quizplus · Accepted Answer

Economies of scope refer to the cost advantages that a firm obtains by producing a wider variety of products, utilizing the same operations or inputs more efficiently. This concept is distinct from economies of scale, which relate to cost advantages due to increased output of a single product.

The Merged Firm's Ability to Generate Synergistic Cost Savings Through