Economies of scope exist between book publishing and magazine publishing if
A) the cost of publishing a magazine is lower for book publishers than for other firms.
B) the cost of publishing a magazine is lower for firms that publish many magazines than for firms that publish only one magazine.
C) the cost of publishing a book falls over time as the publisher acquires more experience.
D) the cost of a publishing a book is not subject to diminishing marginal returns.

Question

Quizplus · Accepted Answer

Economies of scope occur when producing two products together (like books and magazines) is cheaper for a company than producing them separately. Choice A correctly reflects this concept, as it suggests that book publishers can produce magazines at a lower cost, likely due to shared resources, skills, or technologies.

Economies of Scope Exist Between Book Publishing and Magazine Publishing