Question

An economy of scope is best illustrated by being able to eliminate or reduce costs by

A. Combing related value-chain activities of diffrent businesses into a single operation
b. performing all of the value chain activities of related sister businesses a the same location
c. extending the firms scope of operations over a wider geographic area
d. expanding the size of a company's manufacturing plants
e. having more value chain activities performed in house rather than outsourcing them

Answer 1

A. Combining related value-chain activities of different businesses into a single operation.