Economies of scale

        Economies of scale works on the concept that when production cost is distributed relatively to larger volume of units the production cost per unit lowers, this is the reason why many firms opt for larger scale of production.

When production cost is distributed to smaller volume of products the production cost per unit increases. For example, retail companies like reliance always opt for this mechanism to lower down the cost of production. And this is one of the main reasons why they are able to give huge discounts to their customers while small firms cannot.

Economies of scope works on the concept that sometimes producing a single product cannot give you adequate profit therefore major MNC opt to produce multiple products consuming same input. the principle behind this is that when production cost is distributed to many products production cost of each product per unit decreases. This is one reason why google provide multiple services like google map, google drive, Gmail.