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Jun 21, 2019 · Economies of scope represent the production efficiency which enables a firm to produce more than one products at a cost which is lower than the sum of stand-alone costs of each product.
Sep 29, 2020 · Economies of scope is a term that refers to the reduction of per-unit costs through the production of a wider variety of goods or services. Example of Economies of Scope. Let's assume Company XYZ strictly manufactures vacuum cleaners. What would happen if the company decided to branch out into brooms?
noun [ plural ] ECONOMICS, PRODUCTION uk us. Add to word list. the reduction of costs that is the result of sharing resources, processes, and skills in producing a larger range of products: Economies of scope only benefit companies who are also willing to manage the risk of added complexity.
