Its 3 am and i dont have the brain activity to understand anything anymore. Please be as patronising as possible.
In: 23
An economy of scale is where, by going all-in on a single item/industry, you can be more efficient. Think about building huge factories that all make the same thing over and over again.
An economy of scope is the idea that, by diversifying your business, you can also be very efficient. For example, a gas station doesn’t only sell gas; they sell snacks, drinks, common car supplies, common medicines, and sometimes alcohol. By providing a wide variety of goods, they are attracting a wider customer base and therefore getting more business.
Latest Answers