Week 2 DiscussionEconomies of Scope and Scale
What are they? What is the key difference between an economy of scale and an economy of scope?
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One source of growth is external growth from a merger and/or acquisition. Often
merger/acquisition are justified on the basis of the expected benefits from the
merger/acquisition are ‘synergies’. Economists know these as economies of scale and
economies of scope.
Identify a recent merger/acquisition and use it to and answer the question: was the
merger/acquisition predominately about gaining economies of scale or economies scope?
PLEASE DO NOT RELY ON WIKIPEDIA, INVESTOPEDIA OR ANY OTHER PEDIA AS A
REFERENCE AT ANYTIME IN THIS COURSE.
FOR THE MAXIMUM POSSIBLE CREDIT OF 20 POINTS, YOU MUST COMPLETE ONE
POST AND ONE FOLLOW-UP/REPLY. MAKE SURE BOTH THE POST AND REPLY FOCUS
ON THE QUESTIONS ASKED.
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