Substitutes for Exploiting Economies of Scope in Diversification Include

question 81

Multiple Choice

Substitutes for exploiting economies of scope in diversification include

• A) growing and developing independent businesses within a diversified firm and vertical integration.
• B) vertical integration and strategic alliances.
• C) growing and developing independent businesses within a diversified firm and strategic alliances.
• D) strategic alliances and multipoint competition.

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Definitions:

Monopolistic Competition

A scenario in the market characterized by numerous organizations providing products that are parallel but not the same, resulting in some level of market dominance.

Economic Inefficiencies

Situations where resources are not allocated optimally according to some criteria, leading to wasted or less effective outcomes.

Monopolistically Competitive

A commercial structure where many entities vend offerings that are similar in nature but not the same, allowing for slight dominance in the market.

Productive Efficiency

A state where a system can't produce more of one good without reducing the output of another, utilizing resources in the most cost-effective way.