A firm can create economies of scope by using one manufacturing facility for a range of products.

Question

Quizplus · Accepted Answer

Economies of scope refer to producing multiple products using the same resources or facilities. Using one manufacturing facility for a range of products can help a firm achieve economies of scope by spreading the fixed costs associated with the facility over a larger range of products, reducing per-unit cost.

A Firm Can Create Economies of Scope by Using One