One source of growth is external growth from a merger or acquisition. Often mergers or acquisitions are justified on the basis of the expected benefits from “synergies” created by the merger or acquisition. Economists know these as economies of scale and economies of scope.
The focus of this discussion will be on defining economies of scale and economies of scope, as well as the key differences between the two within the context of a hypothetical scenario of your choice.
Select one of the mergers and acquisitions below:
For your chosen scenario, address the following in your discussion post:
Note: In your discussion posts for this course, do not rely on Wikipedia, Investopedia, or any similar website as a reference or supporting source.
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