Economies of Scope Generally Arise from Bundling and Joint-Selling Opportunities

question 78

True/False

Economies of scope generally arise from bundling and joint-selling opportunities.

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Definitions:

Pricing Algorithms

Computer-based methods used to determine the selling price of goods or services, often based on factors such as demand, competition, and cost.

Price-fixing

An agreement among competitors to raise, lower, or stabilize prices or competitive terms.

Collude Tacitly

The act of companies indirectly coordinating their actions, such as setting prices or output levels, without explicit agreement or communication, often to avoid legal penalties.

Horizontal Mergers

The combination of two or more firms operating at the same level of the supply chain in the same or different industries, potentially increasing market share and efficiency but also raising antitrust concerns.