An organization exploits economies of scope when it _____.
A) expands into uncorrelated business operations
B) grows vertically along the value chain
C) launches different products under the same brand name
D) subcontracts various activities to different vendors

Question

Quizplus · Accepted Answer

Economies of scope occur when a company can produce multiple products more cheaply in combination than separately. Launching different products under the same brand name allows a company to share resources across the products, such as marketing, research and development, and distribution channels, thus saving costs and exploiting economies of scope.

An Organization Exploits Economies of Scope When It _____