Sources of external economies of scale include
A) larger plant size that allows the plant to take advantage of technology.
B) larger firm size that results in volume discounts.
C) larger industry size that `results in lower production costs.
D) All of the above are correct.

Question

Quizplus · Accepted Answer

External economies of scale occur when an entire industry grows, leading to lower production costs for all firms within the industry, which is described in option C. Options A and B describe internal economies of scale.

Sources of External Economies of Scale Include