Difference between Economies of Scale and ... - Byju's

Difference between Economies of Scale and Economies of Scope ; Definition ; Economies of scale is a concept of Economics that suggests that when a company reaches ... CommerceListofCommerceArticlesDifferenceBetweenEconomiesOfScaleAndEconomiesOfScope Previous Next DifferencebetweenEconomiesofScaleandEconomiesofScope EconomiesofscaleandEconomiesofscopearetwoconceptsthathaveonethingincommon,whichishelpingtheorganisationinreducingcosts. Economiesofscaleoccurwhenacompanyreachesacertainlevelofproductionwherethecostofproductionwillnotbeincreasing,insteaditisreduced.Suchasituationtakesplacewhenproductsareproducedinbulk.Inotherwords,thecostofproductionisreducedwithitemsproducedinbulk. Economiesofscope,ontheotherhand,occurwhenacompanyproducesvariousproductsandasaresultofthat,thecostofproductiongetsreduced. Letuslookatsomeofthepointsofdifferencebetweentheeconomiesofscaleandeconomiesofscope. EconomiesofScale EconomiesofScope Definition EconomiesofscaleisaconceptofEconomicsthatsuggeststhatwhenacompanyreachesapointwheretheproductioncostisdecreasingduetobulkproduction Economiesofscopeisaneconomicconceptthatsuggeststhatproductionofvariousproductscanleadtoreductionincost Costreduction Reducesthecostofoneproduct Reducesthecostbyproductionofavarietyofproducts Dealswith Productionofgoodsinbulk Productionofavarietyofproductswithinthesametask Reductionoccursdueto Bulkproductionofanyproduct Reductionoccursduetoavarietyofgoodsproducedduringtheproductionprocess. Approach OldApproach Relativelynewapproach ResourceUtilisation Moreresourcesareutilised Lessresourcesareutilised ThisarticlewasallaboutthetopicofDifferencebetweenEconomiesofScaleandEconomiesofScope,whichisanimportanttopicforCommercestudents.Formoresuchinterestingarticles,staytunedtoBYJU’S. TopDifferencesinCommerce DifferenceBetweenVentureCapitalandPrivateEquity DifferenceBetweenPrimaryDataandSecondaryData DifferenceBetweenBillofExchangeandPromissoryNote DifferenceBetweenCentralizationandDecentralization DifferenceBetweenReserveandProvision DifferenceBetweenPartnershipFirmandCompany COMMERCERelatedLinks MicroAndMacroEconomics WhatIsSecondaryData TsGrewal StatementOfRetainedEarnings SandeepGargMacroeconomicsClass12 AccountancyClass11ImportantQuestions AccountancySamplePaperClass11 AccountingForShareCapital DissolutionOfAFirm AverageFixedCost LeaveaCommentCancelreplyYourMobilenumberandEmailidwillnotbepublished.Requiredfieldsaremarked* * SendOTP DidnotreceiveOTP? RequestOTPon VoiceCall * * Website * Grade/Exam Class1 Class2 Class3 Class4 Class5 Class6 Class7 Class8 Class9 Class10 Class11 Class12 IAS CAT BankExam * * PostComment JoinBYJU'SLearningProgram Grade/Exam Class1 Class2 Class3 Class4 Class5 Class6 Class7 Class8 Class9 Class10 Class11 Class12 IAS CAT BankExam GATE Submit × RegisterForFree Share Share Share CallUs RegisterwithBYJU'S&DownloadFreePDFs * SendOTP * * * * * Grade Class1 Class2 Class3 Class4 Class5 Class6 Class7 Class8 Class9 Class10 Class11 Class12 IAS CAT BankExam DownloadNow