Mobilizing recources - Economies of scale and scope
3 important questions on Mobilizing recources - Economies of scale and scope
Why is a reduction in costs possible with economies of scale?
Due to the distribution of fixed costs over a larger quantity of goods sold
What is the scope of the company?
The lowering of the firm's average costs by producing two or more products .
Why is an reduction in costs possible with the scope of a company?
Due to synergistic effects that arise through additional efficiencies
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