Economies of scope


 

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Economies of scope

The property that a firm's average cost falls as it produces a larger number of different products.

Economies of scope

Scope economies exist whenever the same investment can support multiple profitable activities less expensively in combination than separately.



Economies of scope

Similar Matches

Economies of scale

Economies of scale

Increasing returns to scale.


Diseconomies of scale

Diseconomies of scale

Decreasing returns to scale.


Dynamic economies of scale

Dynamic economies of scale

A form of increasing returns to scale in which average cost declines over time as producers accumulate experience, so that average product rises with total output of the firm or industry accumulated over time. See learning by doing, infant industry protection.


External economies of scale

External economies of scale

A 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 scale

Economies of scale

Achievement of lower average cost per unit through increased production.


Further Suggestions

Internal economies of scale
Scale economies
Economies of vertical integration


 
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