Its 3 am and i dont have the brain activity to understand anything anymore. Please be as patronising as possible.
In: 23
Economies of scale is when the cost per unit of output goes down (gets cheaper) as a firm makes more of it.
Economies of scope is when it’s more efficient or results in a lower average cost of production to make two or more things in the same place than it would be to make them all separately.
Scale is when the company that makes your fruit snacks for recess (i know the scooby doo ones are your favorite) can make them really cheaply because they produce a lot all at once, and it’s be more expensive to make fewer at a time.
Scope is when the fruit snack company also makes those little peanut butter crackers and can do it better/cheaper in the same factory vs having one factory for each.
Now get to bed munchkin, and dont forget to bring your permission slip for the zoo trip tomorrow.
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