Which of the following implies reduced unit costs as the range of products offered increases inputs in producing multiple products?
A)Diseconomies of scale.
B)Economies of scale.
C)Economies of scope.
D)Diseconomies of scope.

Question

Quizplus · Accepted Answer

Economies of scope refer to the cost savings that occur when producing multiple products together rather than separately. As the range of products offered increases, the firm can benefit from sharing resources and increasing specialization, which can result in reduced unit costs. Therefore, economies of scope imply reduced unit costs as the range of products offered increases.

Which of the Following Implies Reduced Unit Costs as the Range