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(10 points). Economies of Scope in distribution arises in some industries in which goods or services are routed to and from several markets. For example,

  1. (10 points). Economies of Scope in distribution arises in some industries in which goods or services are routed to and from several markets. For example, airlines are organized around hub-and-spoke networks; that is, the airline flies passengers from a "spoke" city through a central "hub," and then to their outbound spoke destination.

Provide an example using an airline and cities and explain how economies of scope arise.

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