Asked by Tatum Sobota on Jun 11, 2024
Verified
Which of the following is LEAST likely to be associated with the firm that has the higher market share?
A) learning curve effects
B) economies of scale
C) economies of scope
D) higher profitability
Learning Curve Effects
The observed improvement in performance or efficiency as individuals or organizations gain experience in a particular task or activity over time.
Economies of Scale
The economic benefits that businesses gain from operating at a larger scale, typically resulting in lower costs per unit of production as the scale increases.
Economies of Scope
Cost advantages that a business experiences when it increases the variety of products or services it offers, leveraging shared operations or resources.
- Understand factors less associated with higher market share firms.
Verified Answer
JH
jasmine harrisJun 16, 2024
Final Answer :
C
Explanation :
Economies of scope refer to the efficiencies primarily associated with demand-side changes, such as increasing or decreasing the scope of marketing and distribution, or by leveraging synergies between different product lines. This concept is less directly related to market share compared to learning curve effects, economies of scale, and higher profitability, which are more directly influenced by the volume of production and sales that typically accompany higher market share.
Learning Objectives
- Understand factors less associated with higher market share firms.