A lumber company that specializes in making pine boards finds it can lower costs by also making particleboard and paper pulp. This is an example of

Question

Quizplus · Accepted Answer

Economies of scope occur when producing a wider variety of products leads to lower average costs. In this case, the lumber company lowers costs by diversifying its product line to include pine boards, particleboard, and paper pulp.

A Lumber Company That Specializes in Making Pine Boards Finds