Economies of Scope

question 87

Multiple Choice

Economies of scope

• A)are cost reductions that flow from cost-saving strategic fits along the value chains of related businesses in the business lineup of a multibusiness corporation.
• B)arise only from strategic fit relationships in the production portions of the value chains of sister businesses.
• C)are more associated with unrelated diversification than related diversification.
• D)are present whenever diversification satisfies the attractiveness test and the cost-of-entry test.
• E)arise mainly from strategic fit relationships in the distribution portions of the value chains of unrelated businesses.

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