What is meant by economies of scope?
A) Economies of scope refers to the cost advantages from the joint production of multiple goods.
B) Economies of scope refers to the profits that firms earn when they practice price discrimination across market segments.
C) Economies of scope refers to efficiency that firms gain when they specialize in the production of one good.
D) Economies of scope refers to the efficiency gains from specialization and division of labor.
E) Economies of scope refers to the reduction in cost that accrues to a firm due to cumulative production experience and learning.

Question

Quizplus · Accepted Answer

Economies of scope refer to the cost advantages that a company can achieve by producing two or more products or services together, rather than separately. This can result in reduced costs of production, increased efficiency, and ultimately increased profitability for the company.

What Is Meant by Economies of Scope