Introduction
Often, costs can be lowered by producing a complementary good or service to the goods and services already produced. In this paper, you will explore the concepts of Economies and Diseconomies of Scope.
Activity Instructions
Choose a company that produces several products (goods and/or services). For the company you have selected, discuss the combinations of goods and services it produces.
Some questions you may consider in the paper:
Which goods and services enjoy economies of scope?
Why do those economies of scope arise? (Consider inputs, production, distribution and/or output markets, etc.)
Are there goods and services the company produces that could have diseconomies of scope?
Why do those diseconomies of scope arise?
If there are, what effect does that have on the company’s strategy (Consider costs, production, etc.)
What goods or services might you suggest the company consider producing?
Why would it be a good idea for the company to produce those suggested goods or services?
Writing and Submission Requirements
2.5-3 pages, not including title and reference pages