Which one of the following is an example of economies of scope?
A)Acquiring a firm to improve bargaining power in price negotiations
B)Acquiring a firm to gain access to foreign markets
C)Acquiring a firm to improve the production process
D)Acquiring a firm to reduce the overall cost of production

Question

Quizplus · Accepted Answer

Economies of scope occur when producing a wider variety of goods or services together is more cost-effective than producing them separately. Acquiring a firm to reduce the overall cost of production is an example of achieving economies of scope, as it implies that the combined operations can produce a broader range of products more efficiently than if operated independently.

Which One of the Following Is an Example of Economies