Which of the Following Is the Most Likely Result When

question 143

Multiple Choice

Which of the following is the most likely result when there are economies of scope?

• A)outsourcing
• B)vertical integration
• C)natural monopoly
• D)multi-product firms
• E)adverse selection

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Definitions:

Gross Margin

The difference between revenue and cost of goods sold, divided by revenue, expressed as a percentage.

Average Operating Assets

The average value of a company's assets used in its operating activities over a certain period.

Net Operating Income

A company's revenue minus its operating expenses, not including taxes and interest, showing the profitability from regular business operations.

Average Operating Assets

The average amount of assets used during a period to generate operating income, useful in evaluating asset efficiency.