Asked by Bulut Yasin on Jun 30, 2024
Verified
What are diseconomies of scope?
A) the cost of producing two products jointly by one firm is more than the cost of producing them separately
B) the cost of producing two products jointly by one firm is lesser than the cost of producing them separately
C) the cost of producing two products jointly by one firm is equal to the cost of producing them separately
D) none of the above
Diseconomies Of Scope
Exist when the cost of producing two products jointly is more than the cost of producing those two products separately.
- Learn the fundamentals of economies and diseconomies of scope.
Verified Answer
ZK
Zybrea KnightJul 05, 2024
Final Answer :
A
Explanation :
Diseconomies of Scope are the opposite of Economies of Scope, which happens when a firm produces multiple products with a higher cost than the cost of producing these products separately. This could be due to various reasons, such as increased coordination costs, lack of specialization or differences in production requirements. Therefore, option A is the correct answer.
Learning Objectives
- Learn the fundamentals of economies and diseconomies of scope.