Asked by Micah Jones on Jul 14, 2024

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​Farmers rotate their crops between corn and soybean to increase crop yields.This behavior exhibits

A) ​Economies of scale
B) Economies of scope
C) Diseconomies of scale
D) ​Diseconomies of scope

Economies Of Scope

Exist when the cost of producing two products jointly is less than the cost of producing those two products separately.

  • Grasp the idea of economies and diseconomies of scope.
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Sidney ThompsonJul 19, 2024
Final Answer :
B
Explanation :
Farmers rotating their crops between corn and soybean are exhibiting economies of scope. This is because planting different crops in the same field can increase the overall yield per acre of land by reducing soil erosion, controlling pests and diseases, and improving soil fertility. This is different from economies of scale, which refers to the cost advantages of increasing the scale of production, or economies of scope, which refer to the cost advantages of producing multiple products together. Similarly, neither diseconomies of scale nor diseconomies of scope would accurately describe this behavior.