Monday, 22 January 2018

ECO402 GDB Solution Due Date 23-jan-2018

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.

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