Economies of scope
A) is a situation in which it is more expensive to produce goods separately than jointly.
B) is the opposite of economies of scale.
C) occur whenever only one good is produced at a time.
D) are an example of the gains from specialization.

Question

Quizplus · Accepted Answer

Economies of scope refer to the situation where producing multiple goods or services jointly is less expensive than producing them separately. This means that by producing multiple products together, firms can achieve cost savings that they would not be able to attain if they were producing those products independently.

Economies of Scope