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economy of scope

Definition of economy of scope in English:

A proportionate saving gained by producing two or more distinct goods, when the cost of doing so is less than that of producing each separately.
Example sentences
  • They interpret the negative results for bidders to mean that any benefits from economies of scope in the acquisitions are totally reflected in the offering prices banks paid to target firms.
  • To the extent that a pair of business lines shares economies of scope, standard economic theory suggests that they will be combined.
  • On the other hand, the Samsung network has a long way to go in order to create a significant advantage deriving from the economies of scope expected from such networking.
See parent entry: economy

Definition of economy of scope in:

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