The key difference between economies of scale and economies of scope:
A)Economies of scale relate to manufacturing activities;economies of scope relate to a wide range of functions
B)Economies of scale relate to expanding the output of a single product;economies of scope relate to expansion across multiple products
C)There is no practical difference
D)Scale economies are relevant to business strategy;economies of scope to corporate strategy.

Question

Quizplus · Accepted Answer

Economies of scale refer to cost advantages obtained by expanding the output of a single product, while economies of scope refer to cost advantages obtained by expanding across multiple products. Therefore, the key difference between them lies in the expansion strategy they relate to.

The Key Difference Between Economies of Scale and Economies of Scope