Economies of Scope

-Rishad T A -TPS-B -18098

Defenition
y An Economic theory stating that the average total coast of

production decreases and scope of marketting and distribution increases as a result of increasing the number of different goods produced.

Advantages
y Efficient use of media
y P&G

y Efficient use of sales force y Synergies y Distribution y Coast saving

y Byproducts- eg- Bio Mass y Resources eg- Mc Donalds

y Product Diversification

To sum up
y There are economists arguing it is industry specific y Single product- Economies of scale y Multi product- Economies of Scope y Market Dominance- Scale + Scope