Question

A financial institution can achieve cost savings in its credit card operations if it increases the number of cardholders. This is an example of economies of

Answer 1

Economies of scope

Step-by-step explanation:

Economies of scope is a benefit that a company has by producing a a wide range of products or services which reduces the unit cost. In this case of a financial institution, offering more credit cards to a large number of people will help them achieve their desired cost savings. Economies of scope is achieved when it provides a business with ways to generate operational efficiencies.