Which statement about economies of scope is not True?
A) Economies of scope are often attained through programmable automation.
B) Economies of scope bring together two competitive priorities-customization and low price.
C) Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately.
D) Economies of scope reflect low capital intensity and high resource flexibility.

Question

Quizplus · Accepted Answer

Economies of scope typically involve high capital intensity and require a significant level of resource flexibility to produce multiple products more cheaply in combination than separately. Option A is incorrect because programmable automation may be one means of achieving economies of scope but is not the only one. Option B is correct because economies of scope often require trade-offs between customization and low price. Option C is correct because the ability to produce multiple products more cheaply in combination than separately is a defining feature of economies of scope.

Which Statement About Economies of Scope Is Not True