Economies of scope refers to the decrease in average total cost that can occur when a firm
A) produces more than one product.
B) has monopoly power in world markets.
C) controls the raw materials used as inputs.
D) narrows the scope of its regional markets.

Question

Quizplus · Accepted Answer

Economies of scope occur when a company can decrease its average total costs by producing more than one product, leveraging shared resources, technologies, or capabilities across those products.

Economies of Scope Refers to the Decrease in Average Total