Description
- Economies of Scope
Describe two activities inside your organization, or one inside and one outside your organization, that exhibit economies (or diseconomies) of scope. Describe the source of the scope econo- mies. How could your organization exploit the scope economy or diseconomy? Compute the profit consequences of the advice.
The company is Amazon (You should apply the question on Amazon)
Note:
-I want all the answers academic and exact.
-2-3 pages (single specie) .
-Do not plagiarism the answer or cheat it and do not use previous solutions for students or from the internet.
-Do not forget the references.
Explanation & Answer
hey lol, find the attached😗
Running head: ECONOMIC EXHIBITS OF AMASON
Economies Exhibits of Amazon
Student’s name
Institution affiliation
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ECONOMIC EXHIBITS OF AMASON
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Economies Exhibits of Amazon
Amazon is an online retailer outlet. Amazon is an American origin company. It’s the world
largest e-commerce and cloud computing company. In terms of revenue and market capitalization
is the leading company. The total sale comparison is the second largest in the world. Amazon sells
a range of variety ranging from electronics, clothing and footwear, furniture software, apparel, and
toys. (Miller 2018)
Various activities carried out in Amazon exhibits economies of scope. Economies scope
helps to bring the cost of manufacture significantly down. One of the significant activity that
considerably exhibit scope is bulk production. The market demand for Amazon product is high.
The whole world is the market for Amazon product (Rothaermel, 2015). To meet the marked
demand amazon produces its product in bulk. The cost of retail production is high. The raw
materials for production are bought in masses. This mass procurement of raw material lowers the
cost of production.
Bulk production favors automation of activities. The automation reduces human errors.
The same automation reduces human labor which is costly. The use of machine in stages eliminates
time wastage. The machine labor enhances consiste...
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