Explore BrainMass
Share

Economies of scope

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

Show graphically and explain how taking advantage of scope economies affects the market structure of an industry.

© BrainMass Inc. brainmass.com March 21, 2019, 1:26 pm ad1c9bdddf
https://brainmass.com/economics/production/economies-of-scope-96197

Solution Preview

Hi,

Please find the attached graph.

Economies of scope are where the production output of combining functions within a company (producing two items instead of one, etc) is greater than the production output of the individual goods/activies added together. Stated slightly differently, the marginal costs of production are lower when you produce more goods. If you are ...

Solution Summary

Economies of scope are where the production output of combining functions within a company are explicated.

$2.19