giandon1919 giandon1919

23-05-2024
Business

Answered

6. What contributes to the existence of multiproduct firms?
a. Economies of scale
b. Economies of scope
c. Cost complementarity
d. Economies of scope and cost complementarity

Answer :

GinnyAnswer GinnyAnswer

23-05-2024

Final answer:

Economies of scope in multiproduct firms lead to cost reductions and increased efficiency.

Explanation:

Economies of scope refer to the cost reductions associated with producing multiple goods using the same resources, leading to lower unit costs. Multiproduct firms benefit from combining different products to lower their average costs per product. This creates opportunities for firms to increase efficiency and profitability.

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