When a firm or a company makes or tends to make a number of products, instead of concentrating or specializing on a particular one,so as to reduce the cost of production or to be specific it reduces the average total cost of reduction. This phenomenon can be termed as Economies Of Scope.
Example- As my uncle who is having a shop,in which only sells Biriyani. But if he starts selling other fast-food products,then the profit can be more and also he can use the same same storage facility, transportation services, and many other factors associated with production. The restaurant only has to pay one storage facility charge even though there are two products there.
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