Economies of scope cannot exist in:
A) the presence of economies of scale.
B) the presence of diseconomies of scale.
C) firms that produce a single product.
D) firms that produce multiple products.

Question

Quizplus · Accepted Answer

Economies of scope refer to cost advantages that a firm experiences when it produces a variety of products rather than specializing in a single product. Therefore, they cannot exist in firms that produce only a single product.

Economies of Scope Cannot Exist In