Economies of scope and scale

Must be original no plagiarism and must have at least 1 source

PLEASE DO NOT RELY ON WIKIPEDIA, INVESTOPEDIA OR ANY OTHER PEDIA AS A REFERENCE AT ANYTIME IN THIS COURSE.

One source of growth is external growth from a merger and/or acquisition.  Often merger/acquisition are justified on the basis of the expected benefits from ‘synergies’ created by the merger/acquisition. Economists know these as economies of scale and economies of scope.

Select one of the below mergers and acquisitions and determine if the synergies come from economies of scope or economies of scale.  Make sure you provide a clear explanation of the difference between economies of scope and economies of scale.

a) Sirius XM acquires Pandora;

b) the yet to be concluded merger of Sprint, T-Mobile and Metro PCS;

c) the merger of Strayer University and Capella; or

d) the Renault/Nissan/Mitsubishi Alliance.

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