Which Statement About Economies of Scope Is Not True

question 11

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:

Nominal Rate

The stated interest rate of a financial instrument without adjusting for inflation.

Annual Coupon Bond

A bond that pays interest (coupon) to bondholders once a year until maturity, when the principal amount is repaid.

Inflation

The rate at which the general level of prices for goods and services is rising, and, consequently, the purchasing power of currency is falling.

Standard Deviation

A measure of the dispersion or variability in a set of data or probability distribution.