Economies of scope
A) are related to the average cost of producing a good when you double the scale of output.
B) are higher the more specialized a firm is in production.
C) means the rotation of the long-run total cost curve in a downward direction.
D) are a production characteristic in which the total cost of producing given quantities of two goods in the same firm is less than the total cost of producing those quantities in two single-product firm.

Question

Quizplus · Accepted Answer

Economies of scope occur when the total cost of producing two or more goods in a single firm is less than the total cost of producing each of those goods in separate firms. This can result in cost savings from shared resources, such as equipment, facilities, and labor.

Economies of Scope