The Existence of Economies of Scope Is Likely to Lead

question 32

Multiple Choice

The existence of economies of scope is likely to lead a company to

• A)reduce the number of industries and/or products it's directly involved in.
• B)expand the scope of its activities in some relevant way.
• C)create a brand.
• D)not worry too much about fixed costs.

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Definitions:

Permeable

A characteristic of materials that allows liquids or gases to pass through them due to the presence of tiny holes or pores.

Proteoglycans

Large molecules composed of proteins and glycosaminoglycans that provide structural support in cellular matrices.

Extracellular Matrix

A complex network of proteins and carbohydrates outside the cell that provides structural and biochemical support to surrounding cells.

Amino Sugars

A type of sugar molecule that contains an amino group in place of a hydroxyl group, found in many biopolymers and glycoproteins.