Question

There is no direct relationship between economies of scale and economies of scope because Part 5 A. economies of scale pertain to one output and economies of scope pertain to more than one output. B. economies of scale pertain to one input and economies of scope pertain to more than one input. C. economies of scale pertain to cost and economies of scope pertain to output. D. economies of scale pertain to more than one input and economies of scope pertain to one input. E. economies of scale pertain to output and economies of scope pertain to input.

Answer 1

There are no established relationship between the economies of scale and economies of scope because the former pertain to one output and the latter pertain to more than one output.

What is an economies of scale & scope?

An economies of scale means a situation whereby the average costs per unit of output decrease with the increase in output being produced by a firm while the economies of scope means the fact that a production of one good reduces the cost of producing other related good.

However, there is no relation because the former pertain to one output and the latter pertain to more than one output.

Therefore, the Option A is correct.

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