The Statement: "Economies of Scope in Shared Resources Do Not

question 7

Multiple Choice

The statement: "Economies of scope in shared resources do not provide a sufficient justification for diversification" is:

• A)Correct: Cost savings form shared resources are of little value unless there are also organizational capabilities that can be transferred between the businesses
• B)Correct: to justify diversification economies of scope need to be supported by transactions costs in the market for the particular resources
• C)Incorrect: economies of scope are sufficient grounds for diversification on their own
• D)Incorrect: the benefits from economies of scope need to exceed the administrative costs of the corporate HQ.

Recognize the different dynamics and roles within the sex work industry, including the role of emotional labor.

Identify the misrepresentations and realities of sexual interactions in sexually explicit material.

Understand the fundamentals of the legal process involved in civil litigation, including the initiation of a lawsuit and the roles of parties involved.

Recognize the importance of jurisdiction and how legal systems and laws differ between countries and within a country’s different regions.

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Definitions:

Variable Selling Cost

Costs that vary directly with the level of sales, such as commissions or shipping charges related to the sale of products.

Opportunity Costs

Opportunity costs represent the benefits a person, investor, or business misses out on when choosing one alternative over another.

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and direct labor expenses.

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.