According to Goold and Campbell, when companies coordinate the flow of products or services of one unit with that of another unit to reduce inventory, the synergistic effect is known as A. shared know-how. B. pooled negotiating power. C. economies of scale or scope. D. new business creation. E. coordinated strategies

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Business

Kaliyah Pacheco

8 January, 04:26

According to Goold and Campbell, when companies coordinate the flow of products or services of one unit with that of another unit to reduce inventory, the synergistic effect is known as A. shared know-how. B. pooled negotiating power. C. economies of scale or scope. D. new business creation. E. coordinated strategies

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Colt Ellis · Answer 1

economies of scale or scope

Explanation:

Economies of scope states that the average cost of production that a company incurred reduces as a result of increase in the variety of goods produced. A company will gain cost advantage if it chooses to produce complementary products. It is cheaper for two products to share a resource during production than each to have its individual resource.

Economies of scale is defined as the cost advantage a company gains by producing increased amounts of a product.