Economies of Scope in Selling Gels and Bars Wickler assumed zero incremental selling costs for gels (i.e., he assumed HPC’s existing sales & distribution could include gels with no added costs.). Leiter assumed gels’ selling costs should be same per unit as bars. What does each assumption say about economies of scope? What opportunities are there for economies of scope in selling gels and bars? How might gels and bars be positioned to maximize economies of scope? Include in your mini paper: • Definition of economies of scope • How the general definition applies to economies of scope in selling costs • Assessment of what parts of HPC’s systems and resources used to sell and distribute bars could be “shared” with gels without adding costs • List of specific selling costs that would increase with the introduction of gels •
