Question

What are the different “goods” that are produced by an advertising agency, and how might they yield economies of scope in practice?

Answer 1

Advertising agency means that it is a firm or institution that creates a wide variety of advertising ideas and they do advertising and promotion activities for their client organisation.

They produce variety promotion tricks and marketing solutions for their company and make that particular product to the peak of the consumer minds so that they can always care about that particular products or services.

The main products or goods of advertising agencies is planning,preparing and they place the ads on the media to take coverage on the market.

Economies of scope menas that the production of one good reduces the cost of another relative good. By means the products of advertising agencies have to identify the oppurtunities and work hard on it. It may appear when cost are realised by one single agency producing variety products at the same time.

Ecnomies of scope have an immediate action to the problems so that the organisations have the time and place for rescheduling it to a proper way of planning and organizing. It is the way of sharing or connecting variety of utilization of inputs so that it can be reduced.