When the value chains of two separate products or services share activities,such as the same marketing channels,in order to reduce costs,this is an example of
A) economies of scope.
B) economies of scale.
C) economies of integration.
D) economies of learning.
E) outsourcing.

Question

Quizplus · Accepted Answer

When two different products or services share activities like the same marketing channels, it is an example of economies of scope. This happens when there is a cost advantage from producing multiple products or services together, rather than producing them separately. It allows for the efficient use of resources which leads to cost savings.

When the Value Chains of Two Separate Products or Services