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The term 'economiesofscope' was first used where the joint production of two goods costs less that their separate production.
These economiesofscope in transaction differ radically from the traditional economiesofscope in terms of production costs.
In contrast, economiesofscope in transactions refers to the costs of using the market.
The literature has been unclear whether economiesofscope can be achieved on smaller sized integrated operations.
The bundling of such services and products clearly reduces transaction costs, leading to a new type of economiesofscope.
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