The ability to lower the average costs over total production as more products are introduced
A)Economies of scale
B)Economies of Scope
C)Diseconomies of Scale
D)Diseconomies of Scope

Question

​The ability to lower the average costs over total production as more products are introduced
A)​Economies of scale
B)Economies of Scope
C)Diseconomies of Scale
D)​Diseconomies of Scope

Quizplus · Accepted Answer

Economies of Scope refer to the cost advantages that a business obtains due to a broader scope of operations. In this context, it means lowering the average cost per unit through the production of more types of products, rather than just increasing the quantity of a single product.

​The Ability to Lower the Average Costs Over Total Production

The Ability to Lower the Average Costs Over Total Production