Which of the following business combinations likely exhibit economies of scope?
A) Banking services for individuals and banking services for other business
B) Retail clothing stores and electronic (internet) clothing sales
C) Hospitals that perform heart surgery and hospitals that perform cosmetic surgery
D) all of the above

Question

Quizplus · Accepted Answer

A) Providing banking services for both individuals and other businesses allows the bank to use shared infrastructure and resources, such as ATMs and tellers, and potentially cross-sell services to both customer types. 
B) Retail clothing stores and electronic clothing sales can benefit from shared supply chain and distribution networks, as well as leveraging customer data for targeted marketing. 
C) Hospitals that perform different types of surgeries can benefit from shared resources, such as medical staff and equipment, and potentially attract a wider range of patients. Therefore, all of the above business combinations are likely to exhibit economies of scope.

Which of the Following Business Combinations Likely Exhibit Economies of Scope