What are the key differences? Use these concepts to determine whether gains from economies of scale or gains from economies of scope werethe principal reason behind a merger or acquisition.

Select one of the mergers and acquisitions below. Consider whether the merger/acquisition was about scope or scale economies.

• Sirius XM acquired Pandora.
• The acquisition of Credit Karma by Intuit.
• The merger of Strayer University and Capella University to form SEI.

• Explain how economies of scale and scope differ.
• Describe how growth in the case you selected is created from either an economy of scope or scale.