Microsoft found that instead of producing a dvd player and a gaming system separate,it is cheaper to incorporate dvd playing capabilities in their new version of the gaming system.Microsoft is taking advantage of
A)Economies of Scale
B)Learning curve
C)Economies of Scope
D)Decreasing marginal costs

Question

Quizplus · Accepted Answer

Economies of scope refer to the cost savings that result from producing multiple products or services together, as opposed to producing them separately. By incorporating dvd playing capabilities in their new gaming system, Microsoft is taking advantage of the cost savings that result from producing two products together, rather than separately. This is an example of economies of scope.

Microsoft Found That Instead of Producing a Dvd Player and a Gaming