Economies of scope

Economies of scope is a term used to explain when something becomes more efficient when it is done with multiple things at the same time instead of one at a time. Think of it like this: it is easier to buy all your groceries in one shopping trip, instead of going to the store multiple times for a few items each time. This saves you time and energy, and helps you get everything done faster and more efficiently. Economies of scope works in a similar way. For example, if a company makes widgets, it may be more efficient for them to also make thingamajigs because the same machines, supplies, and personnel can be used to make both of them. This saves a lot of money and also helps the company get more things done faster.