"Economies of scope" occur when
A)fixed costs are high and marginal costs are low.
B)a monopoly can produce for the entire market.
C)similar production techniques can be applied to several products.
D)costs are fully distributed.

Question

Quizplus · Accepted Answer

Economies of scope occur when similar production techniques can be used to produce several different products. This allows for greater efficiency and cost savings as the fixed costs of production can be spread across multiple products, leading to lower average costs.

"Economies of Scope" Occur When