By which formula can the concept of economies of scope be represented? A) Average Costs (X,Y) Total Revenues (X) + Total Revenues (Y)

Question

By which formula can the concept of economies of scope be represented? A) Average Costs (X,Y) < Average Costs (X) + Average Costs (Y) B) Total Revenues (X,Y) < Total Revenues (X) + Total Revenues (Y) C) Average Costs (X,Y) > Average Costs (X) + Average Costs (Y) D) Total Revenues (X,Y) > Total Revenues (X) + Total Revenues (Y)

Quizplus · Accepted Answer

Economies of scope occur when producing two or more products together is cheaper than producing them separately, represented by the formula where the combined average costs are less than the sum of individual average costs.

By Which Formula Can the Concept of Economies of Scope