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Economies of scope are conceptually similar to Economies of scale. Whereas economies of scale apply to efficiencies associated with increasing or decreasing the scale of production, economies of scope refer to efficiencies associated with increasing or deceasing the scope of marketing and distribution. Whereas economies of scale refer to changes in the output of a single product type, economies of scope refer to changes in the number of different types of products. Whereas economies of scale refer primarily to supply-side changes (such as level of production), economies of scope refer to demand-side changes (such as marketing and distribution). Economies of scope are one of the main reasons for such marketing strategies as product bundling, product lining, and family branding.

Often, as the number of products promoted is increased and broader media used, more people can be reached with each dollar spent. This is one example of economies of scope. These efficiencies do not last however : at some point additional advertising expenditure on new products will start to be less effective (an example of diseconomies of scope).

If a sales force is selling several products they can often do so more efficiently than if they are selling only one product. The cost of their travel time is distributed over a greater revenue base, so cost efficiency improves. There can also be synergies between products such that offering a complete range of products gives the consumer a more desirable product offering than a single product would. Economies of scope can also operate through distribution efficiencies. It can be more efficient to ship a range of products to any given location than to ship a single type of product to that location.

Not all economists agree on the importance of economies of scope. Some argue that it only applies to certain industries, and then only rarely.

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Economies of scaleIn economics, economies of scale are situations where the average unit cost of producing a good or service decreases as the volume of production increases. The converse situation in which the cost of producing a good or service increases as the volume of

Economies of scopeEconomies of scope are conceptually similar to Economies of scale. Whereas economies of scale apply to efficiencies associated with increasing or decreasing the scale of production, economies of scope refer to efficiencies associated with increasing or de

Economies of agglomerationThe term Economies of agglomeration is used in urban economics to describe the benefits that firms obtain when locating near each other. It is related to the idea of economies of scale and network effects, in that the more related firms that are clustered

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List of Marketing Topics	List of Management Topics
List of Economics Topics	List of Accounting TopicsThis is a list of topics which are relevant to Accountancy. Articles exist for some of these topics, others need to be written. Accounting information system Accounting reform Accounting scandals Accounting software Accounts payable Accounts receivable Ac
List of Finance TopicsWhat follows is a list of over 250 Wikipedia articles on finance topics. This list is an attempt to categorize all financial topics. An alphabetical listing of finance topics can be found at List of finance topics (alphabetical). Fundamental financial con	List of EconomistsEconomists are scholars conducting research in the field of economics. Alphabetical list Below is a list of well-known economists. For quick navigation, select one of these letters: A George Akerlof Maurice Allais Roy G D Allen Elisabeth Altmann-Gottheine