The basic types of operational economies through which firms seek value from economies of scope are
A) synergies between internal and external capital markets.
B) the leveraging of individual tangible resources.
C) the sharing of primary and support activities.
D) joint ventures and outsourcing.

Question

Quizplus · Accepted Answer

The sharing of primary and support activities refers to sharing resources, such as production facilities, distribution channels, human resources, and technology, across multiple products or business lines. This allows for cost savings and the ability to provide customers with a diverse range of products or services. Synergies between internal and external capital markets, leveraging individual tangible resources, joint ventures, and outsourcing are not directly related to operational economies through economies of scope.

The Basic Types of Operational Economies Through Which Firms Seek