Economies of Scope refers to situations where per unit costs are:
A)Unaffected when two or more products are produced
B)Reduced when two or more products are produced
C)Increased when two or more products are produced
D)Demonstrating constant returns to scale
E)Demonstrating decreasing returns to scale

Question

Quizplus · Accepted Answer

Economies of Scope occur when two or more products can be produced at a lower cost together than they could be separately. Therefore, per unit costs are reduced when multiple products are produced.

Economies of Scope Refers to Situations Where Per Unit Costs