Disney is an example of economies of scale because it owns companies that can share its resources in order to increase its costs.

The statement seems to be a bit confused. Disney is indeed an example of economies of scale, but not because it increases its costs. Economies of scale refer to the cost advantage that a business obtains due to expansion. In other words, as a company produces more goods or services, its cost per unit decreases.

Here's how Disney is an example of economies of scale:

1. Disney owns a wide range of businesses, from theme parks and hotels to television networks and film studios. This diversification allows Disney to spread its costs over a larger output - for example, it can spread the cost of producing a movie over the many different platforms it owns where the movie can be distributed.

2. Disney can also share resources across its different businesses. For example, a movie produced by Disney's film studio can be promoted on Disney's TV networks, sold on DVD in Disney's retail stores, and featured in a ride at a Disney theme park. This sharing of resources can lead to significant cost savings.

3. Finally, Disney's large size gives it bargaining power with suppliers, which can result in lower costs. For example, Disney can negotiate lower rates with cable companies for carrying its TV networks because of its size and influence.

So, Disney is an example of economies of scale because its large size and diversification allow it to spread costs, share resources, and negotiate lower prices with suppliers, all of which can lead to lower costs per unit and increased profitability.