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Alex Bitas

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2 hours ago, Alex Bitas said:

if a company produces its product in 2 factories it is more likely to perform economies of scale, economies of scope or both ? 

Hello Alex:


This is site about Objectivism, which is philosophy.  Your question deals with a single specific aspect in the special field of economics and particular to technical/academic jargon/concepts in connection with industry/factories.

Unless there is a person who specializes in the specific field of your inquiry, you might not get any answer let alone the answer you want to hear.


This forum is about philosophy.  Thinking and serious discussion are difficult, but I encourage you not to be afraid of either.  Think. Engage. Listen. Think again.


Good premises,


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  • 10 months later...

I had to look up the meaning of economies of scope. In short meaning combination advantage.

Reasons for a company to split its production over several factories usually stems from hitting production bottlenecks, cost savings and or convenience like in logistics. I would say both are as likely given the insufficient information stated.


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