Farmers rotate their crops between corn and soybean to increase crop yields. This behavior exhibits a. Economies of scale b. Diseconomies of scale c. Economies of scope d. Diseconomies of scope

Question

Joan

Business

30 July, 17:39

Farmers rotate their crops between corn and soybean to increase crop yields. This behavior exhibits a. Economies of scale b. Diseconomies of scale c. Economies of scope d. Diseconomies of scope

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Alexzander Estrada · Answer 1

c. Economies of scope

Explanation:

In business, economies of scope refers to producing more than one product or service because you can earn higher profits by diversifying your production. The cost of producing these products together or one after another is lower or yields more benefits than producing them separately.

In agriculture economies of scope refers to producing as many different crops as you can on the same fields. In the case of soybean and corn (or wheat), the crops are rotated because each crop required different nutrients from the soil.