A food company trying to increase its profits by expanding in to the soft drinks business is an example of
A)Economies of scale
B)Economies of Scope
C)Diseconomies of Scale
D)Diseconomies of Scope

Question

​A food company trying to increase its profits by expanding in to the soft drinks business is an example of
A)​Economies of scale
B)Economies of Scope
C)Diseconomies of Scale
D)​Diseconomies of Scope

Quizplus · Accepted Answer

Economies of scope refer to the cost savings that result from producing multiple products or services together, often using the same resources. In this case, the food company can use its existing resources, such as production facilities and distribution channels, to also produce and sell soft drinks. This can lead to cost savings and increased profitability for the company.

​A Food Company Trying to Increase Its Profits by Expanding

A Food Company Trying to Increase Its Profits by Expanding