Identify a True Statement About Economies of Scope

Multiple Choice

Identify a true statement about economies of scope.

A) They exist when costs are reduced by increasing the volume of a specific activity.
B) They exist when costs are reduced by expanding the scope of a company's operations to related activities.
C) They occur when a company decreases its output below the minimum efficient scale.
D) They occur when a company increases its output beyond the minimum efficient scale.