Which of the Following Best Describes Economies of Scope

Multiple Choice

Which of the following best describes economies of scope?

A) They occur when the average cost of production decreases as the level of output increases.
B) They are effects on costs related to managerial ability and other hard-to-quantify factors.
C) They occur when cost savings are realized from using many of the same inputs to produce multiple products.
D) They occur when the average cost of production increases as the level of output increases.
E) They occur when cost increases are realized from using many of the same inputs to produce multiple products.