: SAGE: economies of scope

social science subjects > business and management > international business > economics of international business > economies of scope

economies of scope

Economies of scope refers to the cost savings and efficiencies generated by the joint production or distribution of final goods and services. Rather than specializing in a single product, a firm can promote its profitability as well as control some of its market risks by diversifying its product line to take advantage of inherent and acquired economic, technical, and organizational advantages. [Source: Encyclopedia of Business in Today's World; Economies of Scope]

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