Which of the Following Is the Best Example of Economies

question 26

Multiple Choice

Which of the following is the best example of economies of scope?

• A)Coca-Cola expands its global operations to sub-Sahara Africa.
• B)Alcohol for car fuel is produced from corn.
• C)Amazon.com decides to rent out its Web site to independent e-commerce companies.
• D)A company reduces its cost by getting bigger discounts for bulk purchases.

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Definitions:

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price point.

Percentage Increase

A measure of how much a quantity has grown compared to its original number, expressed as a percentage.

Demand Curve

The demand curve is a graphical representation showing the relationship between the quantity of a good consumers are willing to buy and its price.

Fewer Units

A scenario where a smaller quantity of a product is being produced, stocked, or sold, possibly due to lower demand or strategic decision-making.