Gaining the Advantage from Economies of Scope Requires That

question 66

Multiple Choice

Gaining the advantage from economies of scope requires that

• A)a company must internally expand its scope.
• B)a company must usually enter into a licence arrangement.
• C)a company must usually acquire a company who is expert in an additional business.
• D)the firm is be able to spread common cost somehow, either by performing the additional activity internally, or by licensing the resource.

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Definitions:

Selling Price

The price at which an item is offered for sale to potential buyers.

PST

Provincial Sales Tax, a tax imposed by some Canadian provinces on the sale of goods and services.

Sweater Costing

The process of determining the production and associated costs of manufacturing a sweater.

Saskatchewan

A province in western Canada, known for its vast open spaces and agricultural produce.