Economies of scope are cost savings resulting from a firm successfully leveraging, either through sharing or transferring, some of its capabilities and competencies developed in one business to another business.

Question

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Economies of scope refer to the cost savings a company can achieve by sharing or transferring its capabilities and competencies across different business units. This allows the company to achieve efficiency and reduce costs by leveraging the resources it already has. Therefore, the statement is true.

Economies of Scope Are Cost Savings Resulting from a Firm