exist(s) when the costs of operating two or more businesses or producing two or more products with the same corporate structure is less than the costs of operating the businesses independently or producing each product separately.

The correct answer is "economies of scope".

Explanation: Economies of scope exist(s) when the costs of operating two or more businesses or producing two or more products with the same corporate structure is less than the costs of operating the businesses independently or producing each product separately.

Economies of scope are very important and useful when planning and strategically directing the production of a company. In addition, its use has other advantages such as the possibility for a firm to achieve diversification.

The formal explanation of the existence of economies of scope is, by broadening the previous definition, that the average cost (or cost per unit manufactured) of producing something individually is greater than producing it together with another good or service.

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