The objective of technological expansion is to achieve economies of scale at the expense of diseconomies of scope.

Question

Quizplus · Accepted Answer

The objective of technological expansion is actually to achieve economies of scope. This means that a company can produce a larger range of products using the same technology, resulting in lower costs per unit. Diseconomies of scope refer to situations where the cost of producing a variety of products exceeds the cost of producing them separately.

The Objective of Technological Expansion Is to Achieve Economies of Scale