Which of the following is a reason for centralizing technology development in a multi-business firm:
A) enable the outsourcing of R&D
B) achieve scope economies in manufacturing
C) achieve scale economies in research and development
D) none of the above

Question

Quizplus · Accepted Answer

Centralizing technology development in a multi-business firm allows the firm to pool its R&D resources and efforts, leading to scale economies in research and development. This means the firm can spread the costs of R&D over a larger output, reducing the average cost per unit of development and enhancing efficiency and innovation across its businesses.

Which of the Following Is a Reason for Centralizing Technology