______ occur when a single firm can produce two or more products more cheaply than can two separate firms.
A) Economies of scale
B) Economies of scope
C) Diseconomies of scale
D) Increasing returns to scale

Question

Quizplus · Accepted Answer

Economies of scope occur when a single firm can produce two or more products more cheaply than can two separate firms. This is because the firm can share resources and infrastructure, such as production facilities, overhead costs, and marketing expenses, among its different products. This leads to cost savings and increased efficiency for the firm.

______ Occur When a Single Firm Can Produce Two or More