Whenever the same investment can support multiple profitable activities less expensively in combination than separately,it is said the following exists:
A)economies of scale
B)economies of scope
C)lowest unit cost pricing
D)diseconomies of scale

Question

Quizplus · Accepted Answer

Economies of scope refer to the cost savings that a company can achieve by producing multiple products or services from the same resources. By leveraging existing infrastructure and shared resources, the cost per unit of production decreases, resulting in overall cost savings. This is different from economies of scale, which refer to cost savings achieved through increasing the volume of a single product or service.

Whenever the Same Investment Can Support Multiple Profitable Activities Less