A firewood supplier has a very seasonal demand for its product.Its transport trucks lay idle during the warmer parts of the year.It can exploit economies of scope if

A) It merges with a manufacturer of wooden Christmas ornaments
B) It turns into a rental trucking company during the warmer months for other seasonal producers such as ice-cream makers
C) It starts producing other seasonal products that would sell mostly during the warmer months such as rustic lawn chairs
D) B and C

Question

​A firewood supplier has a very seasonal demand for its product.Its transport trucks lay idle during the warmer parts of the year.It can exploit economies of scope ifA) ​It merges with a manufacturer of wooden Christmas ornamentsB) It turns into a rental trucking company during the warmer months for other seasonal producers such as ice-cream makersC) It starts producing other seasonal products that would sell mostly during the warmer months such as rustic lawn chairsD) ​B and C

Soyeb Dungaria · Accepted Answer

Final Answer : D, Explanation :  By diversifying into rental trucking services for other seasonal producers during the warmer months and producing other seasonal products, the firewood supplier can exploit economies of scope. This will allow them to utilize their idle transport trucks while generating additional revenue and expanding their customer base. Therefore, options B and C together would be the best choice.

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