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 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 costs for all firms within the industry, not just individual firms or plants.

Sources of External Economies of Scale Include