What Are Economies of Scope and How Are They Different from Economies of Scale? How Are Economies of Scope Related to or Affected by Learning and Experience Economies?

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What are economies of scope and how are they different from economies of scale? How are economies of scope related to or affected by learning and experience economies? Economies of scope refer to the existence of production wherein it becomes less costly to produce two or more products than for separate single product entities to produce identical goods or services. (Hindle, 2008). Economies of scope have spawned many multiproduct firms across the marketplace. (Thomas & Maurice, 2011). Economies of scale reap the benefits when repeatable processes are incorporated to deliver identical products of services. Economies of scope advantages result from the producer generating similar processes to deliver distinct products. (Venkat, 2012). Firms making the most of economies of scope do so with joint products, additional products that are produced with little or no additional inputs from the original product's production. (Thomas & Maurice, 2011). It is also postulated that economies of scale refers to results from understanding the engineering of the processes and economies of scope stem from learning the marketing of the processes. (Venkat, 2012). When businesses are able to centralize certain functions, such as finance or marketing, economies of scope are realized. (Hindle, 2008). Common or shared inputs, when one input is not completely consumed and then is available to produce a second product at no or little cost is another form of economy of scope, (Thomas & Maurice, 2011) as is utilizing the output of one process as the input of another. (Hindle, 2008). Economies of scope can be based upon the marketing of the product and the thought processes behind it. Factors such as what market needs can be addressed with products already produced, what is the most beneficial way to bundle related products, what items should be built and which should be

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