Economies of Scope Exist When It Is Less Expensive to Produce

question 98

True/False

Economies of scope exist when it is less expensive to produce two or more product lines in a single firm than it is to produce them separately.

---

Definitions:

Special Relationship

A legal concept denoting a duty of care that exists between parties, beyond general public duty.

Reporting Issuer

A company whose securities are traded on a stock exchange and must regularly disclose financial and other significant information.

Shares

Units of ownership interest in a corporation or financial asset, providing an equitable distribution of profits, if any, in the form of dividends.

Takeover Bids

Proposals or offers made by one company to purchase a controlling stake in another company.