Suppose a company that produces dishwashers branches out into producing dishes.If this expansion reduces the average cost per unit,the company must:

Question

Quizplus · Accepted Answer

The expansion into producing dishes is an example of economies of scope, which occurs when a company can produce a wider range of products at a lower cost than producing each product separately. This is different from economies of scale, which occur when a company can produce more of a single product at a lower cost. Therefore, the correct answer is C - experience economies of scope.

Suppose a Company That Produces Dishwashers Branches Out into Producing