A manufacturer of electronic components can use its manufacturing machines to produce many different components such as semiconductors, sensors, and capacitors. In this case, the firm benefits from an economy of __, reducing overall production costs by finding multiple uses for its components and facilities.

Respuesta :

In this case, the firm benefits from an economy of Scope, reducing overall production costs by finding multiple uses for its components and facilities.

In this question, it is stated that a company that manufactures electronic components can use its manufacturing machines to produce many different components like semiconductors, sensors, etc. In this case, the company benefits from an economy of Scope.

This means that the company tends to gain a profit from having multiple purposes for the same machines. It reduces the overall production costs by finding multiple uses for its components and facilities. This explains the scope that the company has to make a profit out of it.

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