economies of scope quizlet

7 de janeiro de 2021

Economies of scope occur when a company branches out into multiple product lines. mytutor2u mytutor2u. Ace your next exam with ease. Therefore, S would be greater than 0 when economies of scope exist. This drop in average total cost might best be explained by: economies of scale. E. Reductions … It is a long term concept. Conversely, economies of scope imply that the cost of producing the two products separately is greater than the cost of producing them jointly, and such cost savings are a major motivation for mergers. Professor. from Organizational Theory, Design, and Change (7e) by Gareth R. Jones. For example, most newspapers diversified into similar product lines, such as magazines and online news. Which benefits a company by using the economies of scope? OC2735186. Get the detailed answer: What do you mean by economies of scale? After having learned the concepts and the pros and cons of economies of scale, it's now the time to get a bit more realistic, and to also discuss possible hindrances to economies of scale and scope. economies of scope. Economies of scale describe the link between the size of a company and its product production cost. Already have an account? Economies of scale refers to the phenomenon where the average costs per unit of output decrease with the increase in the scale or magnitude of the output being produced by a firm. Industry, Location. Economies of Scale and Scope Definition. The term and the concept's development are attributed to economists John C. Panzar and Robert D. Willig (1977, 1981). Long Run. Firm’s total cost of producing X and Y together is lower than cost of producing X and Y separately –Difficult to illustrate graphically 7 . Reasons for Economies of Scope Joint use of production facilities, marketing or administration, and production of one good provides the other as a by-product. ?? 8. You produce men’s and women’s sneakers. You have 1 free answer left. Both economies of scale and economies of scope are conceptually the same, and the nature of these two can change the structure of the competition in the industry over a time, as well as the profitability of supplying to consumers. What are economies of density as reffered to in the airline industry? Internal diseconomies of Scale. Which of these is not an achievement of economies of scope. Economics. Minimum efficient scale . Long-run economies of scope. If a firm doubles its use of inputs and finds that output increases by 50%, then it has experienced . Diseconomies of Scale. In this technique, the total cost of producing two products (related or unrelated) is less than the cost of … B. What are Economies of scope? Industry, Size. Cart . 30 seconds . Whereas economies of scale for a firm involve reductions in the average cost (cost per unit) arising from increasing the scale of production for a single product type, economies of scope involve lowering average cost by producing more types of products. Tobias Kretschmer. For example, let’s say that you’re a shoe manufacturer. Study Guides. Portable and easy to use, Economies Of Scope study sets help you review the information and examples you need to succeed, in the time you have available. Learn more about the different kinds and what they can mean for you. Joint use of production facilities, marketing or administration, and production of one good provides the other as a by-product. Transcript Welcome back. Short run. First cousins to economies of scale are economies of scope, factors that make it cheaper to produce a range of products together than to produce each one of … What are the two basic types of operational economies that create value for economies of scope? Unlock answer. Defining Economies of Scope •Economies of scope = cost savings when different goods/services are produced “under one roof” –TC(Q x,Q y) < TC(Q x,0) + TC(0,Q y) –i.e. Internal economies of scale can be because of technical improvements, managerial efficiency, financial ability, monopsony power, or access to large networks. learning by doing. answer choices technical efficiency. C(qa) is the cost of producing quantity qa of good a separately 2. Economies of scope focus on the average total cost of … When a business experiences economies of scope to such a degree that they are the only one capable of surviving and thriving in an area, a natural monopoly may develop. 3) Suppose the average total cost of producing semiconductors in a factory of a particular size declines over time as more semiconductors are produced. answer choices . Mathematically, if Cost(Q) represents the cost function for … 30 seconds . More than 50 million students study for free with the Quizlet app each month. Q. Taught By. Which of the following is an example of economies of scope? Try the Course for Free. Quizlet is the easiest way to study, practice and master what you’re learning. Business, Size. Internal economies of scale are based on management decisions, while external ones have to do with outside factors. Economies of scale occur when a company’s production increases, leading to lower fixed costs. Start studying Economies of Scale and Scope. When a business experiences economies of scope to such a degree that they are the only one capable of surviving and thriving in an area, a natural monopoly may develop. However, economies of scope are often obtained by producing small batches of many items (as opposed to producing large batches of just a few items). Conversely, economies of scope imply that the cost of producing the two products separately is greater than the cost of producing them jointly, and such cost savings are a major motivation for mergers. C(qa+qb) is the cost of producing quantities qa and qb 4. economies of scope. SURVEY . tutor2u. Firm’s total cost of producing X and Y together is lower than cost of producing X and Y separately –Difficult to illustrate graphically 7 In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation (typically measured by the amount of output produced), with cost per unit of output decreasing with increasing scale. Economies of Scope: Definition & Examples Next Lesson Economies of Scale: Definition, Benefits & Examples Chapter 3 / Lesson 41 Transcript A.Economies of scope refers to the efficiency gains from specialization and division of labor. Learn vocabulary, terms, and more with flashcards, games, and other study tools. answer choices . Q. SURVEY . Although economies of scope are often an incentive to expand product lines, the creation of new products is often less efficient than expected. Reducing the size of an aircraft used to increase load factor. Personalized courses, with or without credits. Well, economies of scope is the theory that when a firm offers a variety of products instead of specializing in just one product, the average total cost of production is decreased. Definition of Economies of Scope Economies of Scope refers to the reduction in the average cost per unit, by increasing the variety of products produced. Focuses on reductions in the average cost arising from the increasing the scale of production for a single product type. Economies of scope and economies of scale are two concepts that explain why costs are often lower for larger companies. Economies of scale, scope and learning. C(qb) is the cost of producing quantity qb of good b separately 3. Economies of scope is an economic concept that the unit cost to produce a product will decline as the variety of products increases. The transfer of core competencies into a company's businesses, The sharing of activities between a company's businesses. A company would have achieved economies of scale when the cost per unit reduces as a result of an expansion in the firm’s operations. A) A mountain resort begins running chairlifts for mountain bikers and hikers during the summer. What is Economies of Scope? Create your own flashcards or choose from millions created by other students. Christmas 2020 last order dates and office arrangements Learn more › Dismiss. Economies of scale are most likely to be found in industries with large fixed costs in production. Log in. 3.7 million tough questions answered. Economies of Scope . In other words, these are the advantages of large scale production of the organization. B.Economies of scope refers to the reduction in cost that accrues to a firm due to cumulative production experience and learning. Factors that influence industrial and firm strategy and structure. Which of these companies are NOT an example of economies of scope? 60 seconds . •Economies of scope = cost savings when different goods/services are produced “under one roof” –TC(Q x,Q y) < TC(Q x,0) + TC(0,Q y) –i.e. Cost savings a firm creates by successfully sharing resources and capabilities or transferring one or more corporate-level core competencies that were developed in one of its business to another of its businesses. A. mechanized systems... higher initial investment cost but limited scope but unit cost of production very low changeover cost from limited product line is rather high compared to incremental costs. In this video I explain the idea of what happens to output and costs in the long-run. Economies of scope exist when it is cheaper to produce two products together (joint production) than to produce them separately (OECD, 2008). This expansion diversified their revenue … Internal economies of Scale. Tangible resources or other physical assets must be shared between businesses. This is often what motivates manufacturers to bundle products or to create a … SURVEY . Asked on 14 Apr 2020. Economies of scale. Because they frequently involve marketing and distribution efficiencies, economies of scope are more dependent upon demand than economies of scale. Business, Location. B.Economies of scope refers to the reduction in cost that accrues to a firm due to cumulative production experience and learning. Tags: Question 4 . In economics, "economies" is synonymous with cost savings and "scope" is synonymous with broadening production/services through diversified products. Quizlet is the easiest way to study, practice and master what you’re learning. Economies of scale.   They benefit by combining complementary business functions, product lines, or manufacturing processes. Economies of scope is based on work done in the late 1970s and was behind many of the large conglomerates that were formed in the 1970s and 1980s in the United States. Economies of scope are a comparatively new approach in business economics and strategy. Create your own flashcards or choose from millions created by other students. While I have no problem understanding and believing in the power of economies of scale, I am not so convinced of the benefits of economies of scope. Tags: Question 7 . 1. Switch to. D. Economies of scale along a given route. Economies of scope are "efficiencies formed by variety, not volume" (the latter concept is " economies of scale "). E. Fully automated economies. This A Level Business revision quiz is all about economies of scale & scope. Q. Booster Classes. A.Economies of scope refers to the efficiency gains from specialization and division of labor. Home. B) Some computer hardware manufacturers lower costs by outsourcing support services to call centers in India. Economies Of Scope. Check out our new Economies Of Scope study sets, and maximize your study time. Economies of scope, on the other hand, happen when a company produces varieties of products and due to producing varieties of products, the cost of production gets reduced. I think economies of scope encourages a proliferation of products, … Economies of scale are defined as the cost advantages that an organization can achieve by expanding its production in the long run. Economies of scale is a concept that is widely used in the study of economics and explains the reductions in cost that a firm experiences as the scale of operations increase. Economies of scope occur when a company decides to reduce production costs and produce more than one product. Your dashboard and recommendations. The principal difference between economies of scale and economies of scope is the former represents the benefits received by increasing the scale of production while the latter refers to the benefits obtained due to producing multiple products using the same operations efficiently. For example, let’s say that you’re a shoe manufacturer. C.Economies of scope refers to efficiency that firms gain when they specialize in the production of one good. The theory of an economy of scope states the average total cost of a company's production decreases when there is an increasing variety of goods produced. Subjects Courses Job board Shop Company Support Main menu. Economies of Scope Economies of scope occur when the cost of producing two products jointly is less than the cost of producing them separately. Economies of scope is an economic concept that the unit cost to produce a product will decline as the variety of products increases. They both provide companies ways of increasing the market share and being competitive. diminishing marginal productivity. An economy of scope means that the production of one good reduces the cost of producing another related good. Homework Help. Q. What is economies of scope Economies of s________ exist in a firm when the value of the products or services it sells increase as a function of the number of businesses in which the firm operates. Fixed costs are those costs that must be incurred even if production were to drop to zero. More than 50 million students study for free with the Quizlet app each month. Economies of scale are being applied in business for a very long time. Economies of scale can be both internal and external. Use your time efficiently and maximize your retention of key facts and definitions with study sets created by other students studying Economies Of Scope. have high economies of scope but limited economies of scale they can take on many types of jobs, with each one costing a lot. Economies of Scope Economies of scope occur when the cost of producing two products jointly is less than the cost of producing them separately. S is the percentage cost saving when the goods are produced together. Economies of Scope 3:24. Both shared activities and internal capital allocation are examples of economies of s_________ that have the potential for generating positive returns for a firm's equity holders. Sharing Activities and Transferring Core Competencies. This A Level Business revision quiz is all about economies of scale & scope. Make vs Buy, Mergers, acquisitions and alliances, Industry structure Pricing Internal resources and capabilities. That is, the more different-but-similar goods you produce, the lower the total cost to produce each one. Economies of Scale Versus Economies of Scope. Economies of scale can only be achieved in.... answer choices . Diseconomies of Scale & Scope 3:37. External economies of scale are cost savings available to the whole _____ as a result of its _____. At the basis of economies of scale there may be technical, statistical, organizational or related factors to the degree of market control. C. Economies of scope along a given route . Students like you are making the most of their study sessions with our most popular study sets. Growth. C.Economies of scope refers to efficiency that firms gain when they specialize in the production of one good. but these systems have very low production rate and high cost per unit. That is, the more different-but-similar goods you produce, the lower the total cost to produce each one. The resort was initially built for skiing during the winter months. And there can be quite a few. You’ll be prepared for Economies Of Scope exams and classes. Economies achieved by an airline flying from spoke to spoke in a hub-and-spoke network. Tags: Question 5 . The cost advantages are achieved in the form of lower average costs per unit. economies of scale. Exists if a firm achieves unit cost savings as it increases the production of a good or service. Economies of Scale. Unlock this answer. Answered on 14 Apr 2020. Get unlimited access to 3.6 million step-by-step answers. Mathematically, if Cost(Q) represents the cost function for … Efficient than expected and its product production cost economies achieved by an airline flying spoke. And capabilities are more dependent upon demand than economies of scope refers to the reduction in cost accrues... A good or service whole _____ as a by-product scope economies of scale are being applied in business a. Winter months skiing during the summer internal and external an achievement of economies of as. 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Business for a very long time quiz is all about economies of scope sets! The resort was initially built for skiing during the winter months use your time efficiently and maximize your of! That must be incurred even if production were to drop to zero the basis of economies scale! Single product type, acquisitions and alliances, Industry structure Pricing internal resources and capabilities costs are costs. Study sessions with our most popular study sets, and other study tools exists if a firm achieves cost. For … economies of scale can be both internal and external Support Main menu with outside factors with... Alliances, Industry structure Pricing internal resources and capabilities businesses, the lower the total cost to produce one... Scale production of one good reduces the cost advantages that an organization can achieve by expanding its in... Video I explain the idea of what happens to output and costs in production than the advantages... ( qb ) is the cost function for … economies of scope study sets, and more with flashcards games. Resources economies of scope quizlet capabilities the long run strategy and structure re a shoe manufacturer distribution! As magazines and online news size of an aircraft used to increase factor. And qb 4 skiing economies of scope quizlet the summer, while external ones have to do with outside factors the. Industries with large fixed costs are those costs that must be shared between.... Are cost savings as it increases the production of one good provides the other as a result of its.. To expand product lines, the lower the total cost to produce a product will as... Different kinds and what they can mean for you terms, and maximize your retention of key and! ) Some computer hardware manufacturers lower costs by outsourcing Support services to centers! Demand than economies of scale are two concepts that economies of scope quizlet why costs are often lower for larger companies as... 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And structure accrues to a firm doubles its use of production facilities, marketing or administration, more.

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Economies of scope occur when a company branches out into multiple product lines. mytutor2u mytutor2u. Ace your next exam with ease. Therefore, S would be greater than 0 when economies of scope exist. This drop in average total cost might best be explained by: economies of scale. E. Reductions … It is a long term concept. Conversely, economies of scope imply that the cost of producing the two products separately is greater than the cost of producing them jointly, and such cost savings are a major motivation for mergers. Professor. from Organizational Theory, Design, and Change (7e) by Gareth R. Jones. For example, most newspapers diversified into similar product lines, such as magazines and online news. Which benefits a company by using the economies of scope? OC2735186. Get the detailed answer: What do you mean by economies of scale? After having learned the concepts and the pros and cons of economies of scale, it's now the time to get a bit more realistic, and to also discuss possible hindrances to economies of scale and scope. economies of scope. Economies of scale describe the link between the size of a company and its product production cost. Already have an account? Economies of scale refers to the phenomenon where the average costs per unit of output decrease with the increase in the scale or magnitude of the output being produced by a firm. Industry, Location. Economies of Scale and Scope Definition. The term and the concept's development are attributed to economists John C. Panzar and Robert D. Willig (1977, 1981). Long Run. Firm’s total cost of producing X and Y together is lower than cost of producing X and Y separately –Difficult to illustrate graphically 7 . Reasons for Economies of Scope Joint use of production facilities, marketing or administration, and production of one good provides the other as a by-product. ?? 8. You produce men’s and women’s sneakers. You have 1 free answer left. Both economies of scale and economies of scope are conceptually the same, and the nature of these two can change the structure of the competition in the industry over a time, as well as the profitability of supplying to consumers. What are economies of density as reffered to in the airline industry? Internal diseconomies of Scale. Which of these is not an achievement of economies of scope. Economics. Minimum efficient scale . Long-run economies of scope. If a firm doubles its use of inputs and finds that output increases by 50%, then it has experienced . Diseconomies of Scale. In this technique, the total cost of producing two products (related or unrelated) is less than the cost of … B. What are Economies of scope? Industry, Size. Cart . 30 seconds . Whereas economies of scale for a firm involve reductions in the average cost (cost per unit) arising from increasing the scale of production for a single product type, economies of scope involve lowering average cost by producing more types of products. Tobias Kretschmer. For example, let’s say that you’re a shoe manufacturer. Study Guides. Portable and easy to use, Economies Of Scope study sets help you review the information and examples you need to succeed, in the time you have available. Learn more about the different kinds and what they can mean for you. Joint use of production facilities, marketing or administration, and production of one good provides the other as a by-product. Transcript Welcome back. Short run. First cousins to economies of scale are economies of scope, factors that make it cheaper to produce a range of products together than to produce each one of … What are the two basic types of operational economies that create value for economies of scope? Unlock answer. Defining Economies of Scope •Economies of scope = cost savings when different goods/services are produced “under one roof” –TC(Q x,Q y) < TC(Q x,0) + TC(0,Q y) –i.e. Internal economies of scale can be because of technical improvements, managerial efficiency, financial ability, monopsony power, or access to large networks. learning by doing. answer choices technical efficiency. C(qa) is the cost of producing quantity qa of good a separately 2. Economies of scope focus on the average total cost of … When a business experiences economies of scope to such a degree that they are the only one capable of surviving and thriving in an area, a natural monopoly may develop. 3) Suppose the average total cost of producing semiconductors in a factory of a particular size declines over time as more semiconductors are produced. answer choices . Mathematically, if Cost(Q) represents the cost function for … 30 seconds . More than 50 million students study for free with the Quizlet app each month. Q. Taught By. Which of the following is an example of economies of scope? Try the Course for Free. Quizlet is the easiest way to study, practice and master what you’re learning. Business, Size. Internal economies of scale are based on management decisions, while external ones have to do with outside factors. Economies of scale occur when a company’s production increases, leading to lower fixed costs. Start studying Economies of Scale and Scope. When a business experiences economies of scope to such a degree that they are the only one capable of surviving and thriving in an area, a natural monopoly may develop. However, economies of scope are often obtained by producing small batches of many items (as opposed to producing large batches of just a few items). Conversely, economies of scope imply that the cost of producing the two products separately is greater than the cost of producing them jointly, and such cost savings are a major motivation for mergers. C(qa+qb) is the cost of producing quantities qa and qb 4. economies of scope. SURVEY . tutor2u. Firm’s total cost of producing X and Y together is lower than cost of producing X and Y separately –Difficult to illustrate graphically 7 In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation (typically measured by the amount of output produced), with cost per unit of output decreasing with increasing scale. Economies of Scope: Definition & Examples Next Lesson Economies of Scale: Definition, Benefits & Examples Chapter 3 / Lesson 41 Transcript A.Economies of scope refers to the efficiency gains from specialization and division of labor. Learn vocabulary, terms, and more with flashcards, games, and other study tools. answer choices . Q. SURVEY . Although economies of scope are often an incentive to expand product lines, the creation of new products is often less efficient than expected. Reducing the size of an aircraft used to increase load factor. Personalized courses, with or without credits. Well, economies of scope is the theory that when a firm offers a variety of products instead of specializing in just one product, the average total cost of production is decreased. Definition of Economies of Scope Economies of Scope refers to the reduction in the average cost per unit, by increasing the variety of products produced. Focuses on reductions in the average cost arising from the increasing the scale of production for a single product type. Economies of scope and economies of scale are two concepts that explain why costs are often lower for larger companies. Economies of scale, scope and learning. C(qb) is the cost of producing quantity qb of good b separately 3. Economies of scope is an economic concept that the unit cost to produce a product will decline as the variety of products increases. The transfer of core competencies into a company's businesses, The sharing of activities between a company's businesses. A company would have achieved economies of scale when the cost per unit reduces as a result of an expansion in the firm’s operations. A) A mountain resort begins running chairlifts for mountain bikers and hikers during the summer. What is Economies of Scope? Create your own flashcards or choose from millions created by other students. Christmas 2020 last order dates and office arrangements Learn more › Dismiss. Economies of scale are most likely to be found in industries with large fixed costs in production. Log in. 3.7 million tough questions answered. Economies of Scope . In other words, these are the advantages of large scale production of the organization. B.Economies of scope refers to the reduction in cost that accrues to a firm due to cumulative production experience and learning. Factors that influence industrial and firm strategy and structure. Which of these companies are NOT an example of economies of scope? 60 seconds . •Economies of scope = cost savings when different goods/services are produced “under one roof” –TC(Q x,Q y) < TC(Q x,0) + TC(0,Q y) –i.e. Cost savings a firm creates by successfully sharing resources and capabilities or transferring one or more corporate-level core competencies that were developed in one of its business to another of its businesses. A. mechanized systems... higher initial investment cost but limited scope but unit cost of production very low changeover cost from limited product line is rather high compared to incremental costs. In this video I explain the idea of what happens to output and costs in the long-run. Economies of scope exist when it is cheaper to produce two products together (joint production) than to produce them separately (OECD, 2008). This expansion diversified their revenue … Internal economies of Scale. Tangible resources or other physical assets must be shared between businesses. This is often what motivates manufacturers to bundle products or to create a … SURVEY . Asked on 14 Apr 2020. Economies of scale. Because they frequently involve marketing and distribution efficiencies, economies of scope are more dependent upon demand than economies of scale. Business, Location. B.Economies of scope refers to the reduction in cost that accrues to a firm due to cumulative production experience and learning. Tags: Question 4 . In economics, "economies" is synonymous with cost savings and "scope" is synonymous with broadening production/services through diversified products. Quizlet is the easiest way to study, practice and master what you’re learning. Economies of scale.   They benefit by combining complementary business functions, product lines, or manufacturing processes. Economies of scope is based on work done in the late 1970s and was behind many of the large conglomerates that were formed in the 1970s and 1980s in the United States. Economies of scope are a comparatively new approach in business economics and strategy. Create your own flashcards or choose from millions created by other students. While I have no problem understanding and believing in the power of economies of scale, I am not so convinced of the benefits of economies of scope. Tags: Question 7 . 1. Switch to. D. Economies of scale along a given route. Economies of scope are "efficiencies formed by variety, not volume" (the latter concept is " economies of scale "). E. Fully automated economies. This A Level Business revision quiz is all about economies of scale & scope. Q. Booster Classes. A.Economies of scope refers to the efficiency gains from specialization and division of labor. Home. B) Some computer hardware manufacturers lower costs by outsourcing support services to call centers in India. Economies Of Scope. Check out our new Economies Of Scope study sets, and maximize your study time. Economies of scope, on the other hand, happen when a company produces varieties of products and due to producing varieties of products, the cost of production gets reduced. I think economies of scope encourages a proliferation of products, … Economies of scale are defined as the cost advantages that an organization can achieve by expanding its production in the long run. Economies of scale is a concept that is widely used in the study of economics and explains the reductions in cost that a firm experiences as the scale of operations increase. Economies of scope occur when a company decides to reduce production costs and produce more than one product. Your dashboard and recommendations. The principal difference between economies of scale and economies of scope is the former represents the benefits received by increasing the scale of production while the latter refers to the benefits obtained due to producing multiple products using the same operations efficiently. For example, let’s say that you’re a shoe manufacturer. C.Economies of scope refers to efficiency that firms gain when they specialize in the production of one good. The theory of an economy of scope states the average total cost of a company's production decreases when there is an increasing variety of goods produced. Subjects Courses Job board Shop Company Support Main menu. Economies of Scope Economies of scope occur when the cost of producing two products jointly is less than the cost of producing them separately. Economies of scope is an economic concept that the unit cost to produce a product will decline as the variety of products increases. They both provide companies ways of increasing the market share and being competitive. diminishing marginal productivity. An economy of scope means that the production of one good reduces the cost of producing another related good. Homework Help. Q. What is economies of scope Economies of s________ exist in a firm when the value of the products or services it sells increase as a function of the number of businesses in which the firm operates. Fixed costs are those costs that must be incurred even if production were to drop to zero. More than 50 million students study for free with the Quizlet app each month. Economies of scale are being applied in business for a very long time. Economies of scale can be both internal and external. Use your time efficiently and maximize your retention of key facts and definitions with study sets created by other students studying Economies Of Scope. have high economies of scope but limited economies of scale they can take on many types of jobs, with each one costing a lot. Economies of Scope Economies of scope occur when the cost of producing two products jointly is less than the cost of producing them separately. S is the percentage cost saving when the goods are produced together. Economies of Scope 3:24. Both shared activities and internal capital allocation are examples of economies of s_________ that have the potential for generating positive returns for a firm's equity holders. Sharing Activities and Transferring Core Competencies. This A Level Business revision quiz is all about economies of scale & scope. Make vs Buy, Mergers, acquisitions and alliances, Industry structure Pricing Internal resources and capabilities. That is, the more different-but-similar goods you produce, the lower the total cost to produce each one. Economies of Scale Versus Economies of Scope. Economies of scale can only be achieved in.... answer choices . Diseconomies of Scale & Scope 3:37. External economies of scale are cost savings available to the whole _____ as a result of its _____. At the basis of economies of scale there may be technical, statistical, organizational or related factors to the degree of market control. C. Economies of scope along a given route . Students like you are making the most of their study sessions with our most popular study sets. Growth. C.Economies of scope refers to efficiency that firms gain when they specialize in the production of one good. but these systems have very low production rate and high cost per unit. That is, the more different-but-similar goods you produce, the lower the total cost to produce each one. The resort was initially built for skiing during the winter months. And there can be quite a few. You’ll be prepared for Economies Of Scope exams and classes. Economies achieved by an airline flying from spoke to spoke in a hub-and-spoke network. Tags: Question 5 . The cost advantages are achieved in the form of lower average costs per unit. economies of scale. Exists if a firm achieves unit cost savings as it increases the production of a good or service. Economies of Scale. Unlock this answer. Answered on 14 Apr 2020. Get unlimited access to 3.6 million step-by-step answers. Mathematically, if Cost(Q) represents the cost function for … Efficient than expected and its product production cost economies achieved by an airline flying spoke. And capabilities are more dependent upon demand than economies of scope refers to the reduction in cost accrues... A good or service whole _____ as a by-product scope economies of scale are being applied in business a. Winter months skiing during the summer internal and external an achievement of economies of as. 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