Which statement about economies of scope is not true?
A)Economies of scope are often attained through programmable automation.
B)Economies of scope bring together two competitive priorities-customization and low price.
C)Economies of scope reflect the ability to produce multiple products more cheaply in combination than separately.
D)Economies of scope reflect low capital intensity and high resource flexibility.

Question

Quizplus · Accepted Answer

Economies of scope reflect high capital intensity and low resource flexibility, not the other way around. The ability to produce multiple products more cheaply in combination than separately and bringing together multiple competitive priorities are both true statements about economies of scope. Programmable automation may be one way to achieve economies of scope but it is not a defining characteristic.

Which Statement About Economies of Scope Is Not True