If a firm is able to lower total costs by specializing in marketing and distribution while outsourcing production, it is taking advantage of:
A) less developed nations.
B) economies of scope.
C) economies of scale.
D) technical efficiency.

Question

Quizplus · Accepted Answer

Economies of scope occur when a firm reduces costs by increasing the variety of goods or services it offers, often through specialization and outsourcing.

If a Firm Is Able to Lower Total Costs by Specializing