Producing a diverse number of products leads to economies of scale,and producing a high volume of products leads to economies of scope.

Question

Quizplus · Accepted Answer

This statement is incorrect. Producing a diverse number of products actually leads to economies of scope, while producing a high volume of the same product leads to economies of scale. Economies of scope occur when a company can produce multiple products at a lower cost by sharing resources such as production equipment, distribution channels, and marketing efforts.

Producing a Diverse Number of Products Leads to Economies of Scale,and