economies of scope

economies of scope definition - business

economies of scope

The reduction in costs that results from having two or more enterprises or processes utilize the same resources. For example, a media conglomerate enjoys economies of scope by having a single newsgathering organization provide content to its newspapers, Internet site, television stations, and radio stations.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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