In a money-making effort, a small private university has decided to institute consulting services using its business faculty as consultants whose services would be sold to clients.This university is attempting to use its faculty to gain economies of scope.

Question

Quizplus · Accepted Answer

Economies of scope occur when a company can produce multiple products or services more cheaply in combination than separately. By using its faculty for consulting services, the university is leveraging existing resources to expand its offerings, thus achieving economies of scope.

In a Money-Making Effort, a Small Private University Has Decided