Which of the following statements about types of economies is true?
A)An organization's small size often creates scale economies and economies of scope.
B)An organization's small size often creates scale economies but not economies of scope.
C)An organization's large size often creates scale economies and economies of scope.
D)An organization's large size often creates scale economies but not economies of scope.
E)An organization's large size often creates economies of scope but not scale economies.

Question

Quizplus · Accepted Answer

Large organizations often have the ability to take advantage of scale economies, which arise when the cost per unit of output decreases as production increases. Economies of scope, which arise when one organization can efficiently produce multiple products or services, are also more likely to occur in larger organizations. Therefore, statement C is true.

Which of the Following Statements About Types of Economies Is