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Economies of Scope Differ from Economies of Scale in That

Question 40

Multiple Choice

Economies of scope differ from economies of scale in that


A) scope stems directly from strategic fit along the value chains of related businesses,while scale refers to cost savings that accrue directly from larger-sized operations.
B) scope refers to strategic fits to be gained outside the value chain,while scale refers to the impact of the value chain on operations.
C) scope refers to the reach of defined savings within the value chain,while scale refers to the magnitude or size of the operation itself.
D) scope refers to the possibilities of change,while scale refers to the extent and direction of change.
E) they mean the same thing and the only difference is the extent of cost savings accrued from unrelated businesses in each.

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