Identify a True Statement About Economies of Scope

question 16

Multiple Choice

Identify a true statement about economies of scope.

• A)They exist when costs are reduced by increasing the volume of a specific activity.
• B)They exist when costs are reduced by expanding the scope of a company's operations to related activities.
• C)They occur when a company decreases its output below the minimum efficient scale.
• D)They occur when a company increases its output beyond the minimum efficient scale.

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Definitions:

Direct Approach

A straightforward method of communication where the main point is presented at the beginning of the message.

Negative News

Information or reports that convey unfavorable, adverse, or undesirable outcomes or situations.

Routine

A set of habitual or fixed procedures and practices, typically followed to accomplish tasks or maintain productivity.

Minor

Constituting a smaller or less important part; of lesser seriousness or significance.