If a diversified firm had three businesses and these companies shared a common marketing and service operation,as well as common technology and development,this would be an example of which type of economy of scope?
A) Core competencies
B) Shared activities
C) Risk reduction
D) Multipoint competition

Question

Quizplus · Accepted Answer

Shared activities economy of scope refers to the benefits of having a common set of activities or resources across multiple business units within a diversified firm. In this case, the three businesses share a common marketing and service operation, as well as common technology and development, indicating the presence of shared activities.

If a Diversified Firm Had Three Businesses and These Companies