Question

What is the benefit of an economy of scope?  Can you give an example of an economy of scope?

Answer 1

ans: Economies of scope allow a company to gain efficiency from producing a larger variety of products. A company is able to sell a greater range of products and also respond to changes in consumer preferences. It reduces risks for a company by allowing for related diversification.

example of benefit of an economy of scope?

Economies of scope is an economic concept that the unit cost to produce a product will decline as the variety of products increases. That is, the more different-but-similar goods you produce, the lower the total cost to produce each one. For example, let's say that you're a shoe manufacturer.