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:

Sherman Act

A foundational antitrust law in the United States that prohibits monopolistic practices and promotes competition.

Boycott

A protest strategy where individuals or groups refuse to buy, use, or participate in something as a form of protest.

Clayton Act

An antitrust law enacted in 1914 in the United States, aimed at promoting fair competition and preventing monopolies by prohibiting certain actions that could lead to anti-competitive practices.

Robinson-Patman Act

U.S. legislation aimed at preventing unfair competition and price discrimination by regulating trade practices in the wholesale level.