Because Mega Corp. is very large, it has the ability to use the same process to...
Because Mega Corp. is very large, it has the ability to use the same process to manufacture multiple related products. This type of efficiency is referred to as an economy of ________.
- scale
- agility
- production
- size
- scope
Homework Answers
The correct answer is "scope".
Economies of scope is nothing but the savings that are done in cost by producing different types of products. This involve product diversification and use common resources. Economies of scope reduce the average cost of producing variety of products.
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