In order to comprehend the ontological construction below, please refer to the respective posts for all notions in italic.
Economy of span is realised in the optimal supply and demand of a chain of commodities. The commodities are integrated with each other as the production of one is a consumption of another and the consumption of one is a production of another. When optimising the quantity of an economic good, other goods are affected in their production and consumption. Realised economies of scale for a commodity affect a number of other commodities, so pursuing economy of scale inevitably is in the context of achieving economies of scope, and engaging with economies of scope is secured by appropriate economies of scale. The economies of span are the eventual integration of the optimal economies of scale and scope in the division of labour.
Historical Backdrop
• EUGEN VON BÖHM-BAWERK The Positive Theory of Capital: average period.
