Is it possible to benefit from economies of scope and economies of scale simultaneously?
A)Yes, although in practice one is likely to be more important than the other in a specific firm
B)Theoretically yes, but the organization would need to be larger than any in existence today
C)Yes, but you have to achieve one first, then the other
D)No. They are mutually exclusive

Question

Quizplus · Accepted Answer

It is possible for a firm to benefit from both economies of scope and economies of scale simultaneously. Economies of scale refer to cost savings associated with producing more output, while economies of scope refer to cost savings associated with producing multiple products or services. While the extent to which a firm can benefit from each may vary depending on the firm, it is possible to achieve both at the same time.

Is It Possible to Benefit from Economies of Scope and Economies