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Which of the Following Is an Example of Economies of Scope

Question 21

Multiple Choice

Which of the following is an example of economies of scope?


A) Declining average fixed costs due to increasing levels of capacity utilization
B) A single computer center supports multiple business units
C) Amortization of capitalized software
D) The divestiture of a product line
E) Shifting production from an underutilized facility to another to achieve a higher overall operating rate and shutting down the first facility

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