Option A
A food company trying to increase its profits by expanding in to the soft drinks business is an example of Economies of Scope
Economies of scope represent conditions when creating two or more goods or services collectively occurs at a more economical cost than manufacturing them individually. Economies of scope are an industrial concept that the total price to build a product will diminish as the diversity of products raises.
The provocation in seeking economies of scope is the likelihood of reducing what your business was formerly known for. Products that participate in the related inputs or that have equivalent productive manners contribute great possibilities for economies of scope through diversification.
