The concept of economies of scope of economics has been
applied to “MJ Enterprise” because economies of scope is a cost
advantageous for the organizations. The cost advantageous is arisen when the
firms produce number of products rather than one product.
Advantages of Economies of Scope for MJ Enterprises after
Involving in Joint Production.
1.
Economies of scope
reduce the cost of production for the MJ Enterprises.
2.
Economies of scope
stagnant the sale of the MJ Enterprises.
3.
It provide the
opportunities of sharing/ joint utilization of
input resources for the MJ Enterprises.
4.
Economies of scope
will enable the MJ Enterprise to respond to the varying consumer penchants and
product life cycle.
5.
Computer Aided
Manufacturing and Automation will enable the MJ Enterprises to produce the
number of products with variations.
6.
The number of products
will diversify the risk of the MJ Enterprises.
7.
The MJ Enterprises can
adopt the international or regional variations.
No comments:
Post a Comment