Economies of Scope (Mariona)

In economics, the term "economies of scope" refers to a model/theory that defends that the ATC (Average Total Cost) of a company can decrease through broadening its production/services by diversifying its products. This model says that a company is considered within the 'economy of scope' concept when this one expands its productions from one successful product to more than one(that is usually related to the original. Through this action, the company is able to take advantage of the already cemented industry (by the first original product) and then diversify its production line with a lower cost/without this action being a cost overrun. This model says the product diversification in one same company proves to be of a cheaper cost and a lower time margin than if two different enterprises were to produce independently, precisely due to the previous cemented success of the one company in the same sector that decides to diversify. 

The enterprises are able to achieve this diversification with gain, through a company's efficiency in its production, logistics and distribution processes.

Its advantages are that there is an increase in performance and 

followed by some compa

the production of more than one product by one company, in another words, diversifying its production, and through this diversification, achieve then a reduction of the company's