Question

Producing 200 units of good Y and 100 units of good X in the same factory costs the firm $50,000. In contrast, producing 200 units of good Y in one factory and 100 units of good X in another factory costs the firm $75,000. So if the firm produces the two goods together, it achieves what ?

Answer 1

Answer:

economies of scope.

Explanation:

Economies of scope happen when the total cost of producing one unit of product decreases as the total output increases. This happens because even if the variable costs per unit remain the same, the fixed cost per unit decreases as the number of units produced increases.