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1. What is the meaning of economies of scope? How do they differ from economies of scale? Provide examples in your discussion. 2. As an employer wants to reduce the production cost during the economic recession, he/she could choose to (1) lay off some w

1. What is the meaning of economies of scope? How do they differ from economies of scale? Provide examples in your discussion.

2. As an employer wants to reduce the production cost during the economic recession, he/she could choose to (1) lay off some workers without changing wages or (2) keep all workers but cut wages for all. Which method would you choose? Why?

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