When discussing "economies of scope," it involves understanding that they
A)stem from the cost-saving efficiencies of operating over a wider geographic area.
B)have to do with the cost-saving efficiencies of distributing a firm's product through many different distribution channels simultaneously.
C)stem from cost-saving strategic fits along the value chains of related businesses.
D)refer to the cost savings that flow from operating across all or most of an industry's value chain activities.
E)arise from the cost-saving efficiencies of having a wide product line and offering customers a big selection of models and styles to choose from.

Question

Quizplus · Accepted Answer

Economies of scope refer to cost-saving strategic fits along the value chains of related businesses. This means that companies can save costs by leveraging their resources and capabilities across multiple products or business units that are related in some way. This allows for better coordination, sharing of resources, and reduced redundancies in operations, resulting in cost savings for the company.

When Discussing "Economies of Scope," It Involves Understanding That They