The Concept of Economies of Scale with Economies of Scope
Compare the concept of economies of scale with economies of scope.
Both concepts have same principle which is to lower the production cost, cost savings and increase the marketing competitive advantage in order to gain the high return. However, they have different approach and strategy to save cost and increase return.
The concept of economies of scale is cost savings that accrue from increases or expands in size or number. If two plants produce same unit, unit cost are lower in a large plant than in a small plant. …
- The Concept of Economies of Scale with Economies of Scope
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