Which Statement About Economies of Scope Is NOT True

question 98

Multiple Choice

Which statement about economies of scope is NOT true?

• A)Economies of scope are often attained through programmable automation.
• B)Economies of scope bring together two competitive priorities-customization and low price.
• C)Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately.
• D)Economies of scope reflect low capital intensity and high resource flexibility.

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Definitions:

Amortizing

The process of gradually writing off the initial cost of an asset over a period, especially in the context of loan repayments or in spreading the cost of intangible assets.

Preferred Method

A favored or recommended approach or technique selected among various alternatives for its effectiveness or efficiency.

Convertible Bond

A type of bond that can be converted into a predetermined amount of the company's equity at certain times during its life, usually at the discretion of the bondholder.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company's profits.