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Economies of scope |
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Economies of scopeThe property that a firm's average cost falls as it produces a larger number of different products.Economies of scopeScope economies exist whenever the same investment can support multiple profitable activities less expensively in combination than separately.Economies of scope Similar MatchesDiseconomies of scaleDiseconomies of scaleDecreasing returns to scale. Scale economiesScale economiesIncreasing returns to scale. External economies of scaleExternal economies of scaleA form of increasing returns to scale in which productivity and thus costs of individual firms depend on the output of their entire industry, rather than just their own. Unlike more conventional (internal) scale economies, these are consistent with perfect competition. Economies of scaleEconomies of scaleAchievement of lower average cost per unit through increased production. Economies of scaleEconomies of scaleIncreasing returns to scale. Further SuggestionsEconomies of vertical integrationDynamic economies of scale Internal economies of scale |
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