Would a firm that simply expanded its current product line gain economies of scope? Might highly flexible and proficient labor also offer economies of scope?
A firm cannot simply attain economies of scale just by expanding the product lines .it is because the advantage of EOS is available based on the interchangeability or repeatability of the process and it should help in meeting the demand of it. If it helps in reducing the cost per unit of production then the increasing product line make sense and create economies of scale.
Yes highly flexible and proficient labors can be effectively utilized in the system and thereby it can create economies of scale by reducing the labor cost per unit of production
Would a firm that simply expanded its current product line gain economies of scope? Might highly flexible...