Blaze Corp., a car company, shared its costs of producing cars.It did so by introducing the production of car accessories that are used by customers to upgrade or customize their cars.Blaze Corp.started selling car accessories such as engine oils, wheels, and music player and thus shared its market research costs between cars and car accessories.This led to a definite decrease in the overall cost of production.This scenario best illustrates _____.

Question

Quizplus · Accepted Answer

The scenario best illustrates economies of scope as Blaze Corp. has expanded its production to include car accessories and can share its market research costs between cars and car accessories, thus reducing the overall cost of production.