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If Economies of Scale exist when average costs fall as output increases. So it is important knowing whether your long-run costs exhibit constant, decreasing, or

If Economies of Scale exist when average costs fall as output increases.

So it is important knowing whether your long-run costs exhibit constant, decreasing, or increasing returns to scale which can help you make better long-run decisions.

Economics of Scope exist when the cost of producing two products jointly is less than the cost of producing those two products separately.

Cost (Q1, Q2) < Cost (Q1) + Cost (Q2)

And if you want to exploit economies of scope by producing both Q1 and Q2. This is a major cause of mergers.

So would it be correct in an example below to assume Amazon is experiencing Economies of Scope ?

Question:

So if recently Amazon bought Whole Foods Market.

Due to this potential purchase which Economic Concept is Amazon experiencing "Economies of Scale" or "Economies of Scope" ???

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