Economies of _______ exist whenever the same investment can support multiple profitable activities less expensively in combination than separately.
A)scale
B)size
C)distance
D)scope

Question

Quizplus · Accepted Answer

Economies of scope refer to the cost savings that arise when producing multiple related products or services together. By combining production, firms can leverage their resources, such as equipment, labor, and marketing, to reduce costs and increase profits. This is in contrast to economies of scale, which refer to the cost savings that arise when producing more of the same product or service. Therefore, the best choice is D, scope.

Economies of _______ Exist Whenever the Same Investment Can Support