ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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within a firm
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outside a firm and within a society
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within a firm and the industry
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outside a firm and within an industry
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when MES is at its minimum
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Detailed explanation-1: -External economies of scale are business-enhancing factors that occur outside a company but within the same industry. In addition to lower production and operating costs, external economies of scale may also reduce a company’s variable costs per unit because of operational efficiencies and synergies.
Detailed explanation-2: -External economies of scale happen because of larger changes within the industry, so when the industry grows, the average costs of business drop. Internal economies of scale offer greater competitive advantages because an external economy of scale is shared among competitors.
Detailed explanation-3: -Technical progress leads to development of machine at low price is example of external economies of scale.
Detailed explanation-4: -The size of the business generally matters when it comes to economies of scale. The larger the business, the more the cost savings. Economies of scale can be both internal and external. Internal economies of scale are based on management decisions, while external ones have to do with outside factors.
Detailed explanation-5: -Economies of concentration. When firms within the same industry cluster together, they can take advantage of the existing infrastructure and supply networks. Economies of information. Economies of innovation. Tax breaks. 21-Dec-2022