1)What is the difference between Economies of Scale and Economies of Scope? 2)What factors lead to a shift in the demand curve for healthcare?

1)There is a significant disparity between economies of scope and economies of scale. Economies of scale focus on reducing the average cost with an increment in the output of a particular service and goods, thus, as output increases, the average cost falls. On the contrary, economies of scope focus on reducing the total costs while producing various products while sharing resources. For example, one can produce plastic eating utensils and plastic cups at the same time while sharing factories and raw materials, this reduces the cost of making the two products separately. So, both economies of scale and economies of scope reduce cost but in different ways.

2)

One factor that makes a demand curve for healthcare to shift is the change in living standards. When living standards are high, the demand for healthcare services is low because people can afford a healthy lifestyle. On the other side, when the living standards decline, healthcare services' market demand increases because more people get sick due to low health styles.

The second factor that affects the demand for healthcare is the culture of the people. When people within society are traditionalists, they will go for traditional medicines. This leads to a decline in the demand for modern healthcare services. On the other side, when people are modernized, they will go for current healthcare services; hence, the market demand for current health will increase.