Many universities have either a top football program OR a top basketball program.Very few have both.These results suggest the presence of
A) economies of scope.
B) diseconomies of scope.
C) returns to scale.
D) the law of diminishing marginal returns.

Question

Quizplus · Accepted Answer

The presence of either a top football program or a top basketball program suggests that there are diseconomies of scope. This means that the cost of producing both types of programs together would be greater than producing each separately. Therefore, universities may choose to specialize in one or the other rather than trying to excel in both.

Many Universities Have Either a Top Football Program OR a Top