ECONOMIES OF SCOPE AND THE SCOPE OF THE ENTERPRISE

摘要: Abstract This paper examines elements of an efficiency-based theory the multiproduct firm. The theoretical framework developed by Williamson to explain vertical integration is extended diversification. proposition advanced that a cost function displaying economies scope has no direct implications for business enterprise. However, if are based upon common and recurrent use proprietary knowhow or specialized indivisible physical asset, then enterprise (diversification) efficient way organizing economic activity. These propositions first in general context examined diversification U.S. Petroleum industry.