Economies of Scope Exist Between Book Publishing and Magazine Publishing

question 92

Multiple Choice

Economies of scope exist between book publishing and magazine publishing if

• A) the cost of publishing a magazine is lower for book publishers than for other firms.
• B) the cost of publishing a magazine is lower for firms that publish many magazines than for firms that publish only one magazine.
• C) the cost of publishing a book falls over time as the publisher acquires more experience.
• D) the cost of a publishing a book is not subject to diminishing marginal returns.

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Definitions:

Cooperatives

An organization owned and operated by its members with the objective of benefiting them, often in purchasing or selling goods, obtaining services, or producing goods.

Unincorporated

Describes a business or area that has not been formed into a legal corporation or does not fall under a municipality's jurisdiction, respectively.

Limited Liability

A legal structure that restricts the financial liability of owners or shareholders of a company to the amount they have invested in the company.

Syndicate

An investment group that comes together for the explicit purpose of financing a specific large project.