When a bank is expecting to be able to employ the same managers,employees,and physical resources to offer multiple products and generate costs savings they are expecting which of the following effects?

Question

Quizplus · Accepted Answer

The bank is expecting to benefit from economies of scope, which occur when a firm is able to use the same resources and capabilities to produce and offer multiple products at a lower cost than if it produced each product separately. This is different from economies of scale, which occur when a firm reduces its costs by producing more of a single product. Geographic diversification and product-line diversification are not relevant to the scenario described.

When a Bank Is Expecting to Be Able to Employ