Matsushita has leveraged its investment in advertising and distribution of Panasonic products in a number of consumer and industrial markets,ranging from PCs to VCRs.This is an example of
A)economies of scale
B)economies of scope
C)exploiting the learning curve
D)risk minimization

Question

Quizplus · Accepted Answer

This is an example of economies of scope, which refers to the cost savings and increased efficiency that arise from producing different products or services together rather than separately. Matsushita is able to leverage its investment in advertising and distribution across multiple product lines, which allows them to spread fixed costs over a larger range of products and achieve economies of scale as well.

Matsushita Has Leveraged Its Investment in Advertising and Distribution of Panasonic