Asked by Cynthia Carralero on Sep 24, 2024
Verified
What is a synergy or cost complementarity?
A) the cost of producing different products offered by separate companies would be more expensive when produced by one company
B) the cost of producing different products offered by separate companies is higher than when produced by one company
C) the cost of producing different products offered by separate companies is equal to when the products are produced by one company
D) None of the above
Synergy
The concept that the value and performance of two companies combined will be greater than the sum of the separate individual parts.
Cost Complementarity
Occurs when the cost of producing one good decreases with the increase in production of another good, showing a synergy between the production processes of two goods.
- Comprehend the principles of economies and diseconomies of scope.
Verified Answer
SM
Suleman Mughalabout 2 hours ago
Final Answer :
B
Explanation :
Synergy or cost complementarity occurs when the combined operation of producing different products by one company is less expensive than when those products are produced by separate companies. This can result from shared resources, economies of scale, or other efficiencies.
Learning Objectives
- Comprehend the principles of economies and diseconomies of scope.