Your answer(s) should be in paragraph form. with complete sentences. Grammar is important !One or two paragraphs should be sufficient to answer each question.Support your answer with economic reasoning and facts.

7-1 Scale and Scope

What is the difference between economies of scale and economies of scope?

7-2 Brand Extensions

Suppose Nike's managers were considering expanding into producing sports beverages.

Why might the company decide to do under the Nike brand name?

7-3 Rangers' T-Shirts

The variety of Riverside Ranger logo T-shirts includes 12 different designs. Setup between designs takes one hour (and $18,000), and, after setting up, you can produce 1,000 units of a particular design per hour (at a cost of $8,000). Does this production exhibit scale economies or scope economies?