A different kind of efficiency that arises when a number of different products that can be produced more efficiency together than apart:
A)economies of scope.
B)economies of scale.
C)economies of growth.
D)none of the above.

Question

Quizplus · Accepted Answer

Economies of scope refer to the efficiencies that arise when a firm produces multiple products that can be produced more efficiently together than separately. For example, a company that produces both ice cream and frozen yogurt can use the same equipment and ingredients to produce both products, leading to cost savings and increased efficiency. This is different from economies of scale, which refer to cost savings that arise from producing a larger quantity of a single product.

A Different Kind of Efficiency That Arises When a Number