question archive When there are economies of scope between two products which are separately produced by two firms, merging into a single firm can: 1) accomplish a reduction in costs
When there are economies of scope between two products which are separately produced by two firms, merging into a single firm can: 1) accomplish a reduction in costs
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When there are economies of scope between two products which are separately produced by two firms, merging into a single firm can:
1) accomplish a reduction in costs.
2) lead to an increase in cost.
3) lead to a reduction in sales.
4) accomplish an increase in sales.
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Answer:
When there are economies of scope between two products which are separately produced by two firms, merging into a single firm can:
- Lead to a decrease in the costs
Economies of scope mean that the cost related to two goods can be reduced by producing them together than what is incurred by producing them separately.
option(A)
