what is the difference between economies of scale and economies of scope quizlet
Difference between Economies of Scale and Diseconomies of Scale. As the name implies, there is a clear difference between economies of scale and diseconomies of scale but some people are unable to understand that and get confused. Economies of scale is a point in which a business wishes to achieve for ensuring cost reduction in their processes.
What does 'Economies of Scope' mean. Economies of scope is an economic theory stating that the average total cost of production decreases as a result of increasing the number of different goods produced. For example, McDonald's can produce both hamburgers and French fries at a lower average expense than what it would cost two separate firms to produce each of the goods separately.