Economies of scope are similar in concept to economies of scale.

Name: Economies of scope are similar in concept to economies of scale.
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Question

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Economies of scope and economies of scale both refer to cost advantages, but while economies of scale refer to cost benefits gained by increasing production volume, economies of scope refer to cost benefits gained by producing a wider variety of products. Both concepts involve reducing average costs, but they do so in different ways.

Economies of Scope Are Similar in Concept to Economies of Scale