Which of these statements are FALSE
A)If production exhibits diseconomies of scope,firm should reduce the number of products to reduce costs.
B)If production exhibits diseconomies of scope,firm should increase the number of products to reduce costs.
C)If production exhibits economies of scope,firm should increase the number of products to reduce costs.
D)If production exhibits economies of scope,firm should increase the number of products to reduce costs.

Question

​Which of these statements are FALSE
A)​If production exhibits diseconomies of scope,firm should reduce the number of products to reduce costs.
B)If production exhibits diseconomies of scope,firm should increase the number of products to reduce costs.
C)If production exhibits economies of scope,firm should increase the number of products to reduce costs.
D)​If production exhibits economies of scope,firm should increase the number of products to reduce costs.

Quizplus · Accepted Answer

If production exhibits diseconomies of scope, it means producing multiple products is more costly than producing them separately. Therefore, increasing the number of products will only further increase costs. Choosing A or D would make sense if production exhibited economies of scope, where producing multiple products together leads to cost savings. C is also true in this case, as increasing the number of products can lead to more efficient production.

​Which of These Statements Are FALSE

Which of These Statements Are FALSE