It costs your company $200 to produce pens and pencils together.To produce the same amount of pens and pencils separately costs $100 for the pens and $120 for the pencils.The production of pens and pencils exhibits

Question

Quizplus · Accepted Answer

The cost of producing pens and pencils together ($200) is less than the cost of producing them separately ($100 for pens + $120 for pencils = $220). This indicates that there are economies of scope in producing pens and pencils together.

It Costs Your Company $200 to Produce Pens and Pencils