Economies of Scope and Scale
What are they? What is the key difference between an economy of scale and an economy of scope? https://cdnapisec.kaltura.com/index.php/extwidget/preview/partner_id/956951/uiconf_id/38285871/entry_id/1_e6f88crm/embed/dynamic
One source of growth is external growth from a merger and/or acquisition. Often merger/acquisition are justified on the basis of the expected benefits from the merger/acquisition are ‘synergies’. Economists know these as economies of scale and economies of scope.
Identify a recent merger/acquisition and use it to and answer the question: was the merger/acquisition predominately about gaining economies of scale or economies scope?
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