Which of the Following Is an Example of Economies of Scope

question 21

Multiple Choice

Which of the following is an example of economies of scope?

• A) Declining average fixed costs due to increasing levels of capacity utilization
• B) A single computer center supports multiple business units
• C) Amortization of capitalized software
• D) The divestiture of a product line
• E) Shifting production from an underutilized facility to another to achieve a higher overall operating rate and shutting down the first facility

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Definitions:

Multiple Act Criterion

A standard in social and behavioral research that emphasizes judging behaviors or actions based on a series of observations, rather than a single instance.

Thurstone Scale

A psychometric scale developed by Louis Thurstone to measure attitudes, consisting of statements about a particular issue with varying degrees of agreement or disagreement.

Dimension of Measurement

A specific aspect, property, or characteristic that can be measured or quantified.

Inter-Judge Agreement

The degree of consensus among different observers or judges about a particular phenomenon, often used as a measure of reliability in assessments.