by 21st Century Competition | May 7, 2014
Economies of scale occur when firms achieve per unit cost savings by producing more of a good or service (that is, when average costs decrease as output increases). Such effects arise when it is possible to spread fixed costs over a higher output. Examples of scale...
by 21st Century Competition | May 7, 2014
Economies of scope occur when firms achieve cost savings by increas- ing the variety of goods and services that they produce (joint produc- tion). Such effects arise when it is possible to share components and to use the same facilities and personnel to produce...
