What goods or services might you suggest the company consider producing?

Introduction
Often, costs can be lowered by producing a complementary good or service to the goods and services
already produced. In this paper, you will explore the concepts of Economies and Diseconomies of Scope.
Activity Instructions
Choose a company that produces several products (goods and/or services). For the company you have
selected, discuss the combinations of goods and services it produces.
Some questions you may consider in the paper:
 Which goods and services enjoy economies of scope?
 Why do those economies of scope arise? (Consider inputs, production, distribution and/or
output markets, etc.)
 Are there goods and services the company produces that could have diseconomies of scope?
 Why do those diseconomies of scope arise?
 If there are, what effect does that have on the company’s strategy (Consider costs, production,
etc.)
 What goods or services might you suggest the company consider producing?
 Why would it be a good idea for the company to produce those suggested goods or services?
Writing and Submission Requirements
 2.5-3 pages, not including title and reference pages

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