Which of the following is defined as a merged firm's ability to generate synergistic cost savings through the joint use of inputs in producing multiple products?

Question

Quizplus · Accepted Answer

Economies of scope refer to cost savings generated by a merged firm through joint use of inputs in producing multiple products. Economies of scale refer to cost savings generated by a firm as it increases the scale of production. Economies of synergy is not a commonly used term in economics, and x-efficiencies refer to inefficiencies that arise when a firm lacks the incentives to reduce costs.

Which of the Following Is Defined as a Merged Firm's