Economies of scope are cost savings resulting from a firm successfully leveraging, either through sharing or transferring, some of its capabilities and competencies developed in one business to another business. True False

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Business

Cayden Perkins

24 March, 07:29

Economies of scope are cost savings resulting from a firm successfully leveraging, either through sharing or transferring, some of its capabilities and competencies developed in one business to another business. True False

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Ducky · Answer 1

The correct answer is True.

Explanation:

In the economy of scale, collaboration or business support is presented in the transfer of some strengthened knowledge in order to receive the same from another organization specialized in a necessary activity. The cost savings are presented in that there is no place for the hiring of expert personnel, therefore there are no costs incurred in personnel, office equipment, among others.