What are diseconomies of scope?
A)the cost of producing two products jointly by one firm is more than the cost of producing them separately
B)the cost of producing two products jointly by one firm is lesser than the cost of producing them separately
C)the cost of producing two products jointly by one firm is equal to the cost of producing them separately
D)none of the above

Question

​What are diseconomies of scope?
A)​the cost of producing two products jointly by one firm is more than the cost of producing them separately
B)the cost of producing two products jointly by one firm is lesser than the cost of producing them separately
C)the cost of producing two products jointly by one firm is equal to the cost of producing them separately
D)​none of the above

Quizplus · Accepted Answer

Diseconomies of Scope are the opposite of Economies of Scope, which happens when a firm produces multiple products with a higher cost than the cost of producing these products separately. This could be due to various reasons, such as increased coordination costs, lack of specialization or differences in production requirements. Therefore, option A is the correct answer.

​What Are Diseconomies of Scope

What Are Diseconomies of Scope