What is the difference between an economy of scale and scope

Reference no: EM132200350

Question: Mergers and acquisitions are ways in which firms can generate growth measured by expectations of higher profits and linked to higher profits is expected higher stock values. Growth in profits in mergers and acquisitions arise through gains: in economies of scale; gains in economies of scope; and, sometime by gains in both economies of scale and scope.

What is the difference between an economy of scale and an economy of scope? The video (Business Growth Strategy - Horizontal and Vertical Integration (By tutor2u)) features four recent but very different mergers/acquisitions. Use one of these and explain: was the merger/acquisition predominately about gaining economies of scale or economies scope?

Identify a recent merger/acquisition and use it to and explain: was the merger/acquisition predominately about gaining economies of scale or economies scope?

Reference no: EM132200350

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