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To achieve economies of scale, a broiler fattening business requires a minimum of 10.000 chickens, for a cattle fattening business a minimum of 70 cows

To achieve economies of scale, a broiler fattening business requires a minimum of 10.000 chickens, for a cattle fattening business a minimum of 70 cows is required. Facts show that in the field many farmers only have 1500 chickens, or 3000 chickens. Facts also show that cattle farmers only have less than 5 cows.

  1. A cooperative activist suggested that the farmers unite to form a cooperative. The activist's argument is that by forming a cooperative, the farmers have implemented the Constitution, so that their business will definitely be sustainable. Please explain
  2. Another expert stated that to ensure business sustainability, it was not enough for the farmers to only ensure the economy of scale of their business, but also to achieve the economic of scope. The expert even stated that the economy of scale can only be achieved if the economic of scope of the livestock business has been achieved first. Please explain

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