Explore BrainMass

Economies of Scale vs Economies of Scope

What is the difference between economies of scale and economies of scope? How do firms consider these when investing in processes?

© BrainMass Inc. brainmass.com June 21, 2018, 12:42 am ad1c9bdddf

Solution Preview

Economies of scale are related to reducing the average cost of production of a product by producing in larger quantities whereas economies of scope refers to reducing the average cost of two or more products. Hence, they are closely related ...