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.

Question

Quizplus · Accepted Answer

Economies of scope refer to the cost savings obtained by producing multiple products or services together. Amazon.com renting out its Web site to independent e-commerce companies is an example of economies of scope as it allows Amazon to leverage its existing infrastructure for multiple purposes.

Which of the Following Is the Best Example of Economies