Economies of scope occur when a firm's average costs are lower because it produces a range of products.

Name: Economies of scope occur when a firm's average costs are lower because it produces a range of products.
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Economies of scope refer to the cost advantages that a firm experiences by producing a wider variety of products, utilizing the same operations, resources, or technology, which in turn lowers the average cost per product.

Economies of Scope Occur When a Firm's Average Costs Are