When it is cheaper for one firm to produce a number of different commodities together than it is for a group of small firms to produce those commodities, ____ exist(s).
A)economies of scale
B)economies of scope
C)diminishing marginal returns
D)marginal cost pricing

Question

Quizplus · Accepted Answer

This scenario describes economies of scope, which occur when a firm can produce a range of different products at a lower cost than separate firms producing those products individually.

When It Is Cheaper for One Firm to Produce a Number