A supermarket chain would be a prime example of a business whose strategy is to exploit economies of scope.

Question

Quizplus · Accepted Answer

A supermarket chain can offer a wide range of products under one roof, which helps to reduce production and distribution costs per unit through economies of scope. For example, a supermarket chain can sell groceries, clothing, pharmacy items, and electronics all in one store. By doing this, the supermarket chain can benefit from bulk purchasing discounts, and it can share resources such as checkout lanes, storage space, and personnel, resulting in lower overhead costs.

A Supermarket Chain Would Be a Prime Example of a Business