Author Question: What is the difference between economies of scale and economies of scope? What will be an ideal ... (Read 146 times)

Starlight · **on:** Jul 7, 2018

What is the difference between economies of scale and economies of scope?

What will be an ideal response?

Question 2

What benefits can negotiators get from using the strategy of MESOs?

What will be an ideal response?

britb2u · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

Economies of scale are cost savings from producing large volumes whereas economies of scope are cost savings because of the use of shared resources.

Answer to Question 2

Negotiators who make multiple offers of equivalent value simultaneously (MESOs) enjoy more profitable
negotiated outcomes and are evaluated more favorably by the other party. Specifically, they are seen by the other
party as being more flexible, and they are more satisfied at the end of the negotiation. MESOs increase the discovery
of integrative solutions. MESOs also serve as a more sticky anchor than do stand-alone offers in the sense that the
counterparty views MESOs to be more cooperative and legitimate as compared to single-issue offers.