Asked by Effat Rafsana Hossain on Sep 28, 2024
Producing a diverse number of products leads to economies of scale,and producing a high volume of products leads to economies of scope.
Economies of Scale
Refers to the cost advantages that enterprises obtain due to their scale of operation, leading to a reduced cost per unit.
Economies of Scope
Cost advantages that result from a company offering a range of products rather than specializing in just one.
- Acquire knowledge on the subject of economies of scale and economies of scope.
- Differentiate between various terms and strategies such as by-product synergy, brand recognition, and economies of scale versus economies of scope.
Learning Objectives
- Acquire knowledge on the subject of economies of scale and economies of scope.
- Differentiate between various terms and strategies such as by-product synergy, brand recognition, and economies of scale versus economies of scope.