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

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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