Page 15 - BrewDog Industry Analysis
P. 15
Scope & Scale Economies
Economies of scope result in a decrease in the average
total cost of production resulting from increasing the
number of different goods produced. For example, BrewDog
can produce both craft beer and spirits at a lower average
expense than what it would cost two separate firms to
produce each of the products separately. This is because
BrewDog can share the use of raw product, preparation
facilities, and so forth during production.
