A condition under which the joint output of two or more products within a single firm results in increased average costs is called ________.
A) parenting advantage
B) synergy
C) diseconomies of scope
D) economies of scope

Question

Quizplus · Accepted Answer

Diseconomies of scope occur when the joint production of two or more products within a single firm results in increased average costs. This can happen due to the complexity of coordinating different products or the need for specialized resources or equipment. It is the opposite of economies of scope, which result in decreased average costs with joint production. A parenting advantage refers to the benefits gained by a firm from owning a portfolio of diverse businesses. Synergy refers to the additional value created by the combination of two firms through a merger or acquisition.

A Condition Under Which the Joint Output of Two or More