Economies of scope are cost savings that a firm creates by successfully sharing some of its resources and capabilities or by transferring one or more corporate-level core competencies that were developed in one of its businesses to another of its businesses.

Question

Quizplus · Accepted Answer

Economies of scope refer to cost savings that can be achieved by sharing resources and capabilities across businesses within a company. This can include transferring core competencies developed in one business to benefit another business within the same company.

Economies of Scope Are Cost Savings That a Firm Creates