Mint-processing plant as part of its production process

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Reference no: EM131424911

Fresh Breath Enterprises (FBE) is a well-known manufacturer of mouthwash. Its main facility is a mint-processing plant, which is currently operating at only 60% capacity. FBE is considering the introduction of a line of mint chewing gum that would use the same mint-processing plant as part of its production process. This proposed production scenario is an example of:

Economies of scope

Decreasing returns to scale

Constant returns to scale

Increasing returns to scale

Reference no: EM131424911

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