___________ occur when a firm stops producing a product to pursue economies of scale of another product.
A)Opportunity costs
B)Abandoned product ranges
C)Intra-industry trades
D)Product differentiations
E)Gains from trade

Question

Quizplus · Accepted Answer

When a firm stops producing a certain product, it is abandoning that specific product range. This decision might be made in order to further specialize and pursue economies of scale in another product, which can ultimately lead to increased profitability. This scenario is referred to as abandoned product ranges.

___________ Occur When a Firm Stops Producing a Product to Pursue