Economies of scale and economies of scope are:
A)The same concepts
B)Similar concepts, except that economies of scope relate to expansion across multiple products
C)Similar concepts whose distinction is only really understood by economists
D)Concepts borrowed from different disciplines

Question

Quizplus · Accepted Answer

Economies of scale and economies of scope are related concepts, but they differ in their focus. Economies of scale refer to the cost advantages that arise from producing on a larger scale, while economies of scope refer to the cost advantages that arise from producing a range of products or services. Therefore, option B is the best choice as it correctly compares and contrasts these two concepts.

Economies of Scale and Economies of Scope Are