Question

Estimate the merger's effects on economies of scale, and its effects on average, marginal, and total costs idea and voda

Answer 1

HEY .
---------------------
---------------------
Economies of scope and economies of scale are two different economic concepts used to help cut a company's cost. Economies of scope focuses on the average total cost of production of a variety of goods, whereas economies of scale focuses on the cost advantage that arises when there is a higher level of production of one good.

Economies of Scope

The theory of economies of scope states the average total cost of a company's production decreases when there is an increasing variety of goods produced. Economies of scope give a cost advantage to a company when it produces a complementary range of products while focusing on its core competencies. Economies of scope is an easily misunderstood concept, especially since it appears to run counter to the concepts of specialization and scale economies. One simple way to think about economies of scope is to imagine that it's cheaper for two products to share the same resource inputs (if possible) than for each of them to have separate
FOLLOW ME ..