Which Statement About Economies of Scope Is NOT True

question 58

Multiple Choice

Which statement about economies of scope is NOT true?

• A) Economies of scope are often attained through programmable automation.
• B) Economies of scope bring together two competitive priorities-- customization and low price.
• C) Economies of scope reflect low capital intensity and high resource flexibility.
• D) Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately.

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Definitions:

Entitled

Having a right or claim to something, often by law or through agreements.

Discovered

The act of finding something or someone that was previously unknown or hidden.

Duty to Act in Good Faith

A legal obligation requiring parties to act honestly and fairly towards each other within the bounds of a contract.

Commissions

Payments made to employees or agents based on the sales they generate or the deals they complete, often a percentage of the sale price.