Asked by Torye Smith on Apr 25, 2024
Verified
A firm can create economies of scope by using one manufacturing facility for a range of products.
Economies of Scope
Cost advantages that a business achieves by providing a variety of products rather than specializing in a single product or service.
- Learn about the strategies enterprises can employ to minimize costs by utilizing economies of scope.
Verified Answer
IF
Iesha Faataga7 days ago
Final Answer :
True
Explanation :
Economies of scope refer to producing multiple products using the same resources or facilities. Using one manufacturing facility for a range of products can help a firm achieve economies of scope by spreading the fixed costs associated with the facility over a larger range of products, reducing per-unit cost.
Learning Objectives
- Learn about the strategies enterprises can employ to minimize costs by utilizing economies of scope.