Economies of scope

Question

Economies of scope

Quizplus · Accepted Answer

Economies of scope refer to the efficiencies formed by variety, not volume. They are achieved when a company can produce multiple products more cheaply in combination than separately. This concept supports the idea of complementary financial products offered by banking organizations (A), is a characteristic of universal banks in some countries where banks offer a wide range of financial services (B), and is also achieved through holding companies in the United States, which can own multiple businesses and create synergies among them (C).

Economies of Scope