When Discussing "Economies of Scope," It Involves Understanding That They

question 115

Multiple Choice

When discussing "economies of scope," it involves understanding that they

• A)stem from the cost-saving efficiencies of operating over a wider geographic area.
• B)have to do with the cost-saving efficiencies of distributing a firm's product through many different distribution channels simultaneously.
• C)stem from cost-saving strategic fits along the value chains of related businesses.
• D)refer to the cost savings that flow from operating across all or most of an industry's value chain activities.
• E)arise from the cost-saving efficiencies of having a wide product line and offering customers a big selection of models and styles to choose from.

---

Definitions:

Currency

The system of money in general use in a particular country, vital for financial transactions and economic activities.

M1

A category of the money supply that includes all physical money like coins and currency, as well as demand deposits, checking accounts, and negotiable order of withdrawal (NOW) accounts.

M2

A measure of the money supply that includes cash, checking deposits, and easily convertible near money, such as savings deposits and money market mutual funds.

FDIC

The Federal Deposit Insurance Corporation, a US government agency that insures deposits in banks and thrift institutions.