ABC Co Produces Only Gadgets, and XYZ Co

Multiple Choice

ABC Co. produces only gadgets, and XYZ Co. produces both gadgets and widgets. If ABC Co. produces gadgets at the same average total cost as XYZ Co., economies of:

A) scope are present in ABC.
B) scale are present in ABC.
C) scale are not present in XYZ.
D) scope are not present in XYZ.