When one firm can supply many goods through simultaneous production at higher savings,
A)it has achieved peak production.
B)it has vertically integrated.
C)it has horizontal integration.
D)it has economies of scope.

Question

Quizplus · Accepted Answer

When a firm can produce multiple goods simultaneously at a lower cost than if they had produced each good separately, it is said to have achieved economies of scope. This is different from horizontal integration, which involves a firm acquiring or merging with other firms of the same level of production, and vertical integration, which involves a firm acquiring or merging with firms at different levels of production. Therefore, the best choice is D.

When One Firm Can Supply Many Goods Through Simultaneous Production