How Did Marriott Use Economies of Scope to Achieve Greater

question 80

Multiple Choice

How did Marriott use economies of scope to achieve greater economic value than its competitors?

• A) Marriott increases in cost per hotel unit as number of customers increases.
• B) Marriott decreases in cost per hotel unit as number of customers increases.
• C) Marriott lowered its cost structure by focusing its production assets on one type of hotel, which increased its menu and thus its differentiated appeal.
• D) Marriott lowered its cost structure by sharing its production assets over a several types of hotels, which increased its menu and thus its differentiated appeal.

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Definitions:

Social Change

The significant alteration of social structure and cultural patterns through time.

Demographic Factors

Characteristics of a population used in social science studies, such as age, gender, income level, education, and ethnicity.

Political Regime

The form of government or a set of rules, cultural or social norms, that regulate the operation of a government or institution and its interactions with society.

Proselytizing

The act of attempting to convert someone to another religion or belief system.