Question: A. Describe two activities inside your organization, or one inside and one outside your organization, that exhibit economy (or diseconomies) of scope. Describe the source

A. Describe two activities inside your organization, or one inside and one outside your organization, that exhibit economy (or diseconomies) of scope. Describe the source of the scope economies. How could your organization exploit the scope economy or diseconomy? Compute the profit consequences of the advice.

B. Describe a pricing decision your company has made. Was it optimal? If not, why not? How would you adjust the price? Compute the profit consequences of the change.

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