Economies of scope can also be achieved by licensing and royalties.

Name: Economies of scope can also be achieved by licensing and royalties.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Licensing and royalties allow firms to earn revenue by allowing other companies to use their intellectual property or technology. This can result in economies of scope by leveraging existing resources and capabilities to expand into new markets or industries without having to make significant investments in new products or services.

Economies of Scope Can Also Be Achieved by Licensing and Royalties