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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,
- (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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