Asked by Dylan Skelley on Sep 24, 2024
Verified
After sugar refiner has produced fine sugar for baking purposes,what is left over is used to produce molasses.This technology exhibits
A) Economies of scale
B) Economies of scope
C) Diseconomies of scale
D) Diseconomies of scope
Economies Of Scope
Cost advantages that a business experiences by producing a variety of products rather than specializing in a single product or service.
- Acquire understanding regarding economies and diseconomies of scope.
Verified Answer
BF
Brandon Frederickabout 11 hours ago
Final Answer :
B
Explanation :
The technology of using the leftover sugar to produce molasses exhibits economies of scope, as it allows the sugar refiner to generate additional revenue without incurring significant additional costs or needing specialized resources. The production of molasses complements the primary activity of sugar refining, without requiring a separate production process or facility.
Learning Objectives
- Acquire understanding regarding economies and diseconomies of scope.