TICUNUL 7. Distinguish between the concept of economies of scale and economies of scope with real...

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TICUNUL 7. Distinguish between the concept of economies of scale and economies of scope with real world example in case of me

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Answer 7: Economics of scale and Economics of scope are two reasons for which mergers and acquisitions have been done. Both are used to cut the cost of the merged or acquired company . The differences are :

Economics of scale means that which focus on cost advantage that the company has been acquired after merger and acquisition . It means it has been attained when larger production of single good has been produced after merger and acquisition.Real world example are Nissan has taken 34% of Mitsubishi.
Economics of scope means cutting the total cost when there is an acquisition or merger has been raised.It means that average total cost has been decreased a lot in an economy.Real world example are Sirius and XM radio.

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