Question

what are the synergies that come from the economic of scope for

• The merger of Sprint, T-Mobile and Metro PCS.

Answer 1

Answer:
A comparison on economic of scale and economic of scope for above mentioned parameters are mentioned below:

S. No	Comparison Basis	Economy of Scale	Economy of Scope
1.	Meaning of the term	It focuses mostly on sparing in the cost due to extend in output created.	It mostly focuses to sparing within the cost due to production of two or more products, utilizing same operations
2.	Leads to Reduction in	the average cost of producing single product	the average cost of producing multiple products
3.	Cost Advantage Criteria	the advantage is due to volume	the advantage is due to variety available
4.	Strategy being used	old one	relatively new
5.	Use of	used in large amount of resources	used in common resources

Beneath the deal, Sprint would be ingested into T- Mobile, which the companies say will net $43 billion in cost synergies through economies of scale. It points to MetroPCS, which has three times as many employees presently because it did when T-Mobile procured it in 2013.
Both Sprint and T-Mobile got where they are within the remote market by offering to clients on the bottom of the pay scale. Between them, T-Mobile(38 percent) and Sprint(16 percent) will control more than half the pre-paid market.
Overall the merger was beneficial to the US economy and consumers.

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