Scenario B

question 59

Multiple Choice

Scenario B.Three students-Bernardo,Astrid,and Rajiv-are discussing how to improve efficiency in a manufacturing context.Bernardo says that the company must work toward achieving lower costs per unit of production.Rajiv believes that the company should use the same resources to make more related products.Astrid holds that avoiding the costs of growing too large and creating waste will improve efficiency.
-According to Astrid,avoiding the costs of growing too large and creating waste will improve efficiency.She is referring to

• A)diseconomies of scale.
• B)diseconomies of scope.
• C)economies of scale.
• D)economies of scope.
• E)economies of size.

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Definitions:

RFID

Radio Frequency Identification, a technology that uses electromagnetic fields to automatically identify and track tags attached to objects.

Radio Frequency Identification

A technology using radio waves to identify and track objects, animals, or people by means of tags attached to them.

Franchise System

A franchise system is a business model that allows individuals to own and operate a branch of a larger company, using its brand, trademark, and products.

Contractual System

A formalized system based on legal contracts that define relationships and obligations among parties, often used in franchising and vertical marketing systems.