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:

Common Stock

A type of security that represents ownership in a corporation, giving shareholders voting rights and a claim on profits in the form of dividends.

Dividend

A disbursement from a corporation to its stockholders, often derived from earnings.

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often with dividend priority.

Common Stock

A form of corporate equity ownership, a type of security representing ownership in a corporation.