What is economic of scale and economic of scope?

     when it comes to studying economics, you definitely have to study these two concepts.
     Well, do you know what these two concepts are and what the difference are? this time, on the way of studying for examination in my university in Germany, I had a time to know about these concepts, then I will share you. I think these concepts are really useful and what you should know.
     
     At first, economic of scale means that as the scale of productivity increases, the cost for per production decreases. For example, when your company expand the scale of production at twice compared to before, the cost for per production might be divided by 2. At least, cost is reduced. But this concept is not permanent. At a certain point, the difference between scale and reduction of cost. As you can see below, as going to up-side in line, the decreasing of the reduction of cost per product is emerged. This is economic of scale concept.

     Next, economic of scope. This is similar word to economic of scale that I explained earlier though, the concept is also similar.
This economic word means that in the case of increasing the amount production or/and introducing multifaced project, the company, firm or corporation can reduce the cost for per production or project. That is because when it comes to doing them within own company, firm or corporation, compared that it is enforced by some company, the total cost would be low. For example, assumption of bread production. And you want to add some more flavours which are banana flavour, blueberry flavour and apple flavour.
When it comes to thinking that multiple company add these flavours, company A, for example, produce banana flavour bread, company B produce blueberry flavour bread and company C produce apple flavour bread, In this case, each of company need finance for salary of employees, machine maintenance and so on. So, it would be high total cost.
However, in case that one company produce these three breads by themselves. The total cost would be lower than another case. That is because they can reduce redundant cost like, as I said above, salary of employee, maintenance cost for machine or so. these costs are necessary. But in one case, one company produce three product and, in another case, three company produce three product, one company one product. This is obvious result, the total cost of the case that one company produce three products by themselves would be lower cost. 
This is economic of scope, as increasing the amount production or/and introducing multifaced project, the company, firm or corporation can reduce the cost for per production or project.