Economies of Scale and Scope

Economies of Scale and Scope

Economies of Scope and Scale

What are they? What is the key difference between an economy of scale and an economy of scope? https://cdnapisec.kaltura.com/index.php/extwidget/preview/partner_id/956951/uiconf_id/38285871/entry_id/1_e6f88crm/embed/dynamic

One source of growth is external growth from a merger and/or acquisition. Often merger/acquisition are justified on the basis of the expected benefits from the merger/acquisition are ‘synergies’. Economists know these as economies of scale and economies of scope.

Identify a recent merger/acquisition and use it to and answer the question: was the merger/acquisition predominately about gaining economies of scale or economies scope?

PLEASE DO NOT RELY ON WIKIPEDIA, INVESTOPEDIA OR ANY OTHER PEDIA AS A REFERENCE AT ANYTIME IN THIS COURSE.

 

 

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