Which of the Following Best Describes Economies of Scope

question 26

Multiple Choice

Which of the following best describes economies of scope?

• A)The average cost declines as output increases
• B)The average cost increases as output increases
• C)The average cost remains constant as output increases
• D)Savings are achieved when a firm produces a wider variety of goods
• E)Savings are achieved when a firm produces a decreased variety of goods