Which of the following best defines "economies of scope"?
A) As output expands the cost of producing a good decreases.
B) As output expands the cost of producing a unit of a good decreases.
C) Because firms use specialized resources to produce a range of goods, as the number of products produced increases, the cost of producing a unit decreases.
D) Costs increase as firms seek to find more consumers.

Question

Quizplus · Accepted Answer

Economies of scope occur when a company can produce multiple products more cheaply in combination than separately, often due to shared resources or capabilities.

Which of the Following Best Defines "Economies of Scope