The Key Difference Between Economies of Scale and Economies of Scope

question 11

Multiple Choice

The key difference between economies of scale and economies of scope:

• A)Economies of scale relate to manufacturing activities;economies of scope relate to a wide range of functions
• B)Economies of scale relate to expanding the output of a single product;economies of scope relate to expansion across multiple products
• C)There is no practical difference
• D)Scale economies are relevant to business strategy;economies of scope to corporate strategy.

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Definitions:

Thermal Overload Units

Protective devices in electrical circuits that interrupt power in the event of an overload to prevent overheating, often integrated into motors and circuit breakers.

Full Load Amperes

The current drawn by an electric motor when operating at its designed capacity.

Overload Heaters

Protective devices installed in motor starters to prevent motors from overheating by mimicking the thermal characteristics of the motor under overload conditions.

Inverse Time-Delay

A characteristic of certain protective devices where the time taken to interrupt the current decreases as the magnitude of the fault current increases.