Economies of S____

When doing more is better.

We’re familiar with economies of scale, but have you heard of economies of scope?

Economy of scope means the production of one good reduces the cost of producing an another related good. The result is a lower marginal cost than producing these goods separately.

For example a cartoonist produces a comic strip for publication but also makes posters of the strip and uses the same strip for marketing on social media.

As a creative entrepreneur you can lower your cost by choosing to do multiple related things that produce economise of scope. Rather than spreading resources too thinly on unrelated projects.