What is the difference between economies of scale and economies of scope?
A)Scale refers to the magnitude or size of the operation, while scope refers to the reach of defined savings within the value chain.
B)Scale refers to the extent of change, while scope refers to the possibilities of change.
C)Scale is about dimensions, while scope is about the capacity available for production capabilities.
D)Scale refers to cost savings that accrue directly from larger-sized operations, while scope stems directly from strategic fit along the value chains of related businesses.
E)Scale and scope mean the same thing and the only difference is the extent of cost savings accrued from unrelated businesses in each.

Question

Quizplus · Accepted Answer

Economies of scale refer to the cost savings that result from larger-sized operations, while economies of scope result from strategic fit along the value chains of related businesses. In other words, scale is about the magnitude or size of the operation, while scope is about the reach of defined savings within the value chain.

What Is the Difference Between Economies of Scale and Economies