Which of the Following Explain Why Cost Reduction Occurs in the Context

Multiple Choice

Which of the following explain why cost reduction occurs in the context of scope economies?

A) high production volumes.
B) high production volumes and similarities in the resource requirements for different products.
C) high production volumes and the tendency of the firm to fully exploit its existing resources.
D) similarities in resource requirements for different products, as well as the tendency of the firm to fully exploit its existing resources.