Economies of scope exist when
A) the total cost of production falls as the output increases.
B) a firm hires specialized resources to produce a range of goods and services.
C) a firm uses outsourcing to produce a good or service.
D) the cost of producing a unit of a good falls as its output increases.

Question

Quizplus · Accepted Answer

Economies of scope occur when a firm can produce multiple products more cheaply in combination than separately, often by using specialized resources efficiently across a range of goods and services.

Economies of Scope Exist When