Cost savings not directly due to economies of scope or economies of scale are referred to as:
A) economies of scale.
B) economies of scope.
C) x-efficiencies.
D) none of the options.

Question

Quizplus · Accepted Answer

X-efficiencies refer to cost savings that arise from factors other than economies of scale (which are savings due to increased production levels) and economies of scope (which are savings due to the variety of products produced). These can include improvements in management practices or technological innovations.

Cost Savings Not Directly Due to Economies of Scope or Economies