Ray's Radios believed the synergies between radio production and battery production could be realized if he expanded.However,due to overseeing the battery expansion Ray devoted less time to the radio business leading to the radio unit costs increasing.Ray's Radios is experiencing

A) Economies of scale
B) Economies of scope
C) Diseconomies of scale
D) Diseconomies of scope

Question

​Ray's Radios believed the synergies between radio production and battery production could be realized if he expanded.However,due to overseeing the battery expansion Ray devoted less time to the radio business leading to the radio unit costs increasing.Ray's Radios is experiencingA) ​Economies of scaleB) Economies of scopeC) Diseconomies of scaleD) ​Diseconomies of scope

Alicia Espinosa · Accepted Answer

Final Answer : D, Explanation :  Diseconomies of scope occur when a company expands its operations or product line in a way that leads to inefficiencies or increased costs, as seen in Ray's Radios where expanding into battery production caused the radio unit costs to increase due to less attention being devoted to the radio business.

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