Economies of scope are said to exist when:
A) one firm produces many products rather than separate firms for each.
B) many firms produce many products rather than one firm producing all.
C) many firms produce a single product rather than one firm.
D) one firm produces multiple products rather than separate firms producing all.

Question

Quizplus · Accepted Answer

Economies of scope exist when one firm produces multiple products rather than having separate firms producing each product. This allows the firm to share resources, such as manufacturing facilities and distribution networks, which can lead to lower costs and increased efficiency.

Economies of Scope Are Said to Exist When