Scale and scope economies

Scale and scope economies

Bachelor of Business Studies (BBS) — First Year

Subject: Microeconomics for Business (MGT 207)

Unit 6: Cost and Revenue Curves

Academic Year: 2083/84

Topic Objectives

After studying this topic, students should be able to:

• Explain the scope and key elements of scale and scope economies.
• Explain the economic reasoning and use appropriate diagrams or relationships in business analysis.

Curriculum Scope

• Economies of scale
• Concept of economies of scope

Detailed Microsyllabus

1. Economies of scale

   1. Cost advantages associated with larger output scale.
   2. Internal and external sources as relevant to the analysis.
   3. Distinguish scale economies from production returns to scale.

2. Economies of scope

   1. Cost advantages of producing products jointly.
   2. Shared resources and complementarities.
   3. Compare joint production with separate production at the same outputs.

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Curriculum reference: Tribhuvan University, Faculty of Management, BBS curriculum with first-year syllabus, PDF pages 17-19.

Source note: The curriculum scope above is retained from the existing TU syllabus breakdown. The numbered study subtopics are editorial elaborations for teaching and study, rather than a separately issued TU syllabus. Unit lecture hours apply to the whole unit; no separate topic hours or marks are assigned here. The programme subject list identifies this course as MGT 207; the detailed subject heading in the source prints MGT 203.