Select all the options that explain Economies of SCOPE rightly
1. Using the same factory
2. Using the same machinery
3. Using the same resources and Raw material
4. To manufacture the same thing 5. To manufacture new variety
Answers
Explanation:
Answer and Explanation:
Answer and Explanation:Economies of scale are achieved by producing a large volume of a single product. As more and more units of the same product are produced, the average cost starts to fall as economies of scale are realized. On the other hand, economies of scope are realized when a firm benefits from producing a wide variety of products using the same production operations.
Answer and Explanation:Economies of scale are achieved by producing a large volume of a single product. As more and more units of the same product are produced, the average cost starts to fall as economies of scale are realized. On the other hand, economies of scope are realized when a firm benefits from producing a wide variety of products using the same production operations.The reason why firms produce multiple lines of products is to enjoy economies of scope. Also, by selling various different products, the firm diversifies its risks. If one product falls out of fashion, the firm is still selling other products that could be in fashion.
Answer and Explanation:Economies of scale are achieved by producing a large volume of a single product. As more and more units of the same product are produced, the average cost starts to fall as economies of scale are realized. On the other hand, economies of scope are realized when a firm benefits from producing a wide variety of products using the same production operations.The reason why firms produce multiple lines of products is to enjoy economies of scope. Also, by selling various different products, the firm diversifies its risks. If one product falls out of fashion, the firm is still selling other products that could be in fashion.Producing multiple products also helps in using the production capacity to its full level. There is no wastage of the workers' time and productivity can be kept high.
Answer:
using the same factory
using the same factory