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    Economies of scope

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

    © BrainMass Inc. brainmass.com October 9, 2019, 6:44 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.

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