Economies of scope
A)are cost reductions that flow from operating in multiple related businesses.
B)arise only from strategic fit relationships in the production portions of the value chains of sister businesses.
C)are more associated with unrelated diversification than related diversification.
D)are present whenever diversification satisfies the attractiveness test and the cost of entry test.
E)arise mainly from strategic fit relationships in the distribution portions of the value chains of unrelated businesses.

Question

Quizplus · Accepted Answer

Economies of scope refer to cost reductions that arise from operating in multiple related businesses. This can be achieved through sharing resources, knowledge, and capabilities across multiple businesses, resulting in cost savings and increased efficiencies.

Economies of Scope