Which of the Following BEST Illustrates an Economy of Scope

Multiple Choice

Which of the following BEST illustrates an economy of scope?

A) Being able to eliminate or reduce costs by combining related value-chain activities of different businesses into a single operation.
B) Being able to eliminate or reduce costs by performing all of the value chain activities of related sister businesses at the same location.
C) Being able to eliminate or reduce costs by extending the firm's scope of operations over a wider geographic area.
D) Being able to eliminate or reduce costs by expanding the size of a company's manufacturing plants.
E) Being able to eliminate or reduce costs by having more value chain activities performed in-house rather than outsourcing them.