When the marginal cost of producing one output is reduced wh

When the marginal cost of producing one output is reduced when the output of another product is increased this is called:

a) Cost complementarities

b) Economies of scope

c) Economies of scale

d) The marginal rate of technical substitution

Solution

a. Cost complementarities - when the marginal cost of producing one output is reduced when the output of another product is increased is called a cost complementarity