Which of the following statements regarding the rarity of diversification is accurate?
A) If only a few competing firms have exploited a particular economy of scope, that economy of scope can be rare.
B) A particular economy of scope can only be rare if no other firms are exploiting that economy of scope.
C) A particular economy of scope can be rare even if many other firms are exploiting that economy of scope.
D) If only a few competing firms have exploited a particular economy of scope, that economy of scope can be rare but only if the firm is pursuing unrelated diversification.

Question

Quizplus · Accepted Answer

If only a few competing firms have exploited a particular economy of scope, that economy of scope can be rare, as it is not widely utilized by competitors, making it a potential source of competitive advantage.

Which of the Following Statements Regarding the Rarity of Diversification