Warehouses in economies of scope is utilized to its maximum advantage by storing a range of product lines and input materials.
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In economies of scope, firms should take cost advantages by providing a variety of related products to make full use of the inputs rather than specializing in the delivery of a single product. Sharing or joint utilization of inputs among similar products are the main reason for economies of scale.
For instance, one company's managerial team is capable of researching, marketing and promoting more than one product, thus this company can achieve economies of scope and utilize this team fully to bring down cost by delivering more than one product.
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