Economies of scope are characterized by A. low capital intensity and low resource flexibility. B. high capital intensity and low resource flexibility. C. high capital intensity and high resource flexibility. D. low capital intensity and high resource flexibility.

Question

Business

Greyson Roach

2 August, 18:43

Economies of scope are characterized by A. low capital intensity and low resource flexibility. B. high capital intensity and low resource flexibility. C. high capital intensity and high resource flexibility. D. low capital intensity and high resource flexibility.

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Answers (1)

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Nola Moreno · Answer 1

C. high capital intensity and high resource flexibility

Explanation:

Economies of scope describe situations in which the long-run average and marginal cost of a company, organization, or economy decreases, due to the production of some complementary goods and services. An economy of scope means that the production of one good reduces the cost of producing another related good.