When a product transformation curve for a firm is bowed inward, there are ________ in production.
A) economies of scope
B) economies of scale
C) diseconomies of scope
D) diseconomies of scale

Question

Quizplus · Accepted Answer

A product transformation curve that is bowed inward indicates diseconomies of scope, meaning that producing more of one product leads to a disproportionately large reduction in the production of another product.

When a Product Transformation Curve for a Firm Is Bowed