Economies of Scope Is One of the Two Key Factors

question 124

Multiple Choice

Economies of scope is one of the two key factors in determining whether a corporate strategy is adding value through diversification. The other key factor is ________ opportunities.

• A) vertical
• B) horizontal
• C) geographic globalization
• D) revenue-enhancement

Understand the relationship between output size and the concepts of economies of scale and diseconomies of scale.

Understand the shapes of average total cost (ATC) and average variable cost (AVC) curves and their significance.

Understand and identify examples of Parkinson's Law in organizational contexts.

Recognize industries that benefit from economies of scale and those that do not.

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Definitions:

Information-Processing

A cognitive approach that likens the mind to a computer, focusing on how people encode, store, and retrieve information.

Brain

The organ located in the head of an animal that coordinates its actions and sensory information by transmitting signals to and from different parts of its body.

MEG

Stands for Magnetoencephalography, a noninvasive imaging technique used to measure the magnetic fields produced by neuronal activity in the brain.

Head Coil

A device used in magnetic resonance imaging (MRI) to improve the signal-to-noise ratio of the images obtained.