Which of the Following Is an Example of Economies of Scope

question 21

Multiple Choice

Which of the following is an example of economies of scope?

• A) Declining average fixed costs due to increasing levels of capacity utilization
• B) A single computer center supports multiple business units
• C) Amortization of capitalized software
• D) The divestiture of a product line
• E) Shifting production from an underutilized facility to another to achieve a higher overall operating rate and shutting down the first facility