Economies of scope refers to the idea that
A)producing large quantities results in lower costs per unit produced.
B)materials and processes employed in one product can be used to make related products.
C)getting products to market ahead of the competition is, often, a key to success.
D)the producer with the greatest percentage of market share has maximum staying power.
E)the variety of products offered indicates sustainable economic growth.

Question

Quizplus · Accepted Answer

Economies of scope are achieved when a company can use the same resources and processes to produce a range of related products, thereby reducing costs and increasing efficiency. This contrasts with economies of scale, which refers to reducing costs by producing a higher volume of a single product.

Economies of Scope Refers to the Idea That