An electronics company that previously specialized in making televisions finds it can lower costs by making DVD players and car computer systems. This is an example of economies of scale.

Question

Quizplus · Accepted Answer

This is an example of economies of scope, where a company lowers costs by producing a variety of products, not economies of scale, which refers to cost advantages gained by increasing the scale of production for a single product.

An Electronics Company That Previously Specialized in Making Televisions Finds