Question

Use the table to indicate which description characterizes economies of scale and which characterizes economies of scope.

Description Economies Economies
of Scale of Scope
Long-run average costs are lower for greater quantities
of output.
The cost of producing two products separately is greater
than the cost of producing both of those goods jointly.

Answer 1

Answer and Explanation:

The economics of scope refers to the total cost production cost i.e to be averaged for the various type of goods

While on the other hand, the economics of scale refers to the benefit of the cost than occurs when there is a higher production level at a time

Based on this, the classification is as follows

1, Economics of scale as the output rises that declines the LAC so automatically it goes downward

2. economics of scope