METHOD OF SAVINGS IN COST

ECONOMIES OF SCALE 

Economies of scope which will clearly explains about how to use the same inputs for different outcomes

In simple words same set of inputs used to different outcomes

Economies of scope occur when products share common inputs and diversification leads to cost savings

Road transport, education industries will explain about the economies of scope

How road transport will come under economies of scope?

Road transport we construct the road once we use it for different ways like travel, transport of raw materials, importing and exporting

The inputs are same in all the cases but the outcomes are different

Now let us talk about education institutes which offer different varieties of courses

The inputs used are same, college is same inputs used are same but the income get for different courses are more

Using same inputs but the outcome is different (fees collected from different courses will be outcomes)