Multiple Choice
Economies of scope occur when
A) two firms producing different products merge and average total cost declines.
B) a firm increases output and long-run average total cost declines.
C) an increase in capital shifts the short-run average total cost curve down.
D) one firm spins off and average total cost declines.
E) average total cost increases along with firm expansion.
Correct Answer:

Verified
Correct Answer:
Verified
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