Question

When joint production of different goods is more efifcient than isolated production of a good, we have a phenomenon called .

• A. economies of scale
• B. constant returns
• C. economies of scope
• D. division of labour

Answer 1

The correct option is C economies of scope

When joint production of different goods is more efifcient than isolated production of a good, we have a phenomenon called economies of scope. It's cheaper for goods to share the same inputs for each to have separate inputs.