7-30 The objective of technological expansion is to achieve economies of scale at the expense of diseconomies of scope.

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The objective of technological expansion is to achieve economies of scope (the ability to produce multiple products using similar technology and resources) without sacrificing the benefits of economies of scale (reducing per unit costs by increasing production). Achieving economies of scale at the expense of diseconomies of scope would result in increased production costs and decreased efficiency.

7-30 the Objective of Technological Expansion Is to Achieve Economies