Investopedia / Michela Buttignol
Economies of scale can be achieved in several ways, aggregating the same resources to produce more goods and finding uses for by-products.
Economies of scope exist if generating two or more goods in combination produces a lower marginal cost than generating them separately.
The maximum apparent merit is efficiency. Using the same resources to produce products can save a company time and money, thus expanding its profitability. Revenue can also be higher through economies of scope, as this generates more products to sell.
Economy of scope and economy of scale are two tactics for a company to grow successfully and make economic gains. The former aims to increase potency through variety, while the latter targets marginal prices by generating additional units.
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