Economies of scope are related to the average cost of producing a good when you double the scale of output.

Question

Quizplus · Accepted Answer

Economies of scope are related to the average cost of producing multiple goods together rather than producing a single good at a larger scale. Economies of scope relate to the average cost of producing a range of related goods together, not just one good. It is not solely dependent on doubling the scale of output of one good.

Economies of Scope Are Related to the Average Cost of Producing