A large restaurant chain decides that they are going to start serving breakfast in order to better utilize the expense equipment that they purchased to cook with. They are taking advantage of:
A) economies of scope.
B) outputs.
C) economies of scale.
D) transaction costs.

Question

Quizplus · Accepted Answer

Economies of scope refer to the cost savings that arise when companies produce multiple products or services using the same resources. In this case, the restaurant chain is leveraging its existing equipment to produce a new product (breakfast) without incurring the additional costs of purchasing new equipment.

A Large Restaurant Chain Decides That They Are Going to Start