Economies of Scope Exist When

question 346

Multiple Choice

Economies of scope exist when

• A) the total cost of production falls as the output increases.
• B) a firm hires specialized resources to produce a range of goods and services.
• C) a firm uses outsourcing to produce a good or service.
• D) the cost of producing a unit of a good falls as its output increases.

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Definitions:

Complexity

The degree to which a system, project, or problem contains numerous or intricate parts requiring careful analysis or handling.

Team Effectiveness

A measure of how well a team achieves its goals, accomplishes tasks, and meets the needs and objectives of the organization.

Innovation

The process of creating new ideas, products, or methods that bring about significant improvements or advancements.

Commitment

The dedication or pledge to carry out a task or adhere to a plan or agreement.