The key concepts of economies of scope, resources and capabilities, transaction costs, and cost and complexity are:
A)Common to vertical, geographical, and product scope
B)Common concepts used in micro-economics
C)Concepts used in the Porter's five forces model of competition
D)Different, but have relationships related to the risk they entail

Question

Quizplus · Accepted Answer

These concepts are commonly used in discussing and analyzing different types of business scope such as vertical integration, geographical expansion, and product diversification. They all relate to the potential for cost savings, the strengths and weaknesses of a company's resources and capabilities, and the trade-offs between different options.

The Key Concepts of Economies of Scope, Resources and Capabilities