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DedPeter [7]
3 years ago
9

After sugar refiner has produced fine sugar for baking purposes, what is left over is used to produce molasses. This technology

exhibits a. ​Economies of scale b. ​Diseconomies of scale c. ​Diseconomies of scope d. ​Economies of scope
Business
1 answer:
Blizzard [7]3 years ago
6 0

Answer:

ECONOMIES OF SCOPE

Explanation:

Economies of Scope concept implies producing different , but related products will reduce the per unit  cost of production of the firm (relatively lesser than if the products would have been produced separately.

This happens because of backward & forward linkages in interrelated but different goods' inputs & outputs .

Ex : In this case, another byproduct - molasses has been produced of waste from sugar production, which could have otherwise been purchased input.

Economies of Production is cost reduction due to quantity & not variety production. Diseconomies of Scale & Diseconomies of Scope are their opposite phenomenas leading to cost rise . So , none of these 3 are apt.

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