Asked by Pinky Patel on Sep 24, 2024
Verified
The ability to lower the average costs over total production as more products are introduced
A) Economies of scale
B) Economies of Scope
C) Diseconomies of Scale
D) Diseconomies of Scope
Average Costs
The total cost of production divided by the number of units produced, representing the cost per unit of output.
- Grasp the notion of economies and diseconomies of scale and their implications.
- Absorb the theories related to economies and diseconomies of scope.
Verified Answer
JM
Jazlynn McNeill1 day ago
Final Answer :
B
Explanation :
Economies of Scope refer to the cost advantages that a business obtains due to a broader scope of operations. In this context, it means lowering the average cost per unit through the production of more types of products, rather than just increasing the quantity of a single product.
Learning Objectives
- Grasp the notion of economies and diseconomies of scale and their implications.
- Absorb the theories related to economies and diseconomies of scope.