GK
BUSINESS ECONOMICS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Industry, Location
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Business, Location
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Industry, Size
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Business, Size
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Detailed explanation-1: -Key Takeaways. 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: -Economies of Scale Definition Economies of scale are cost savings that a company (and, by default, its customers) can reap as a result of efficient production processes. Generally, these cost savings are achieved because the average cost of producing something falls as the volume being produced increases.
Detailed explanation-3: -Technical progress leads to development of machine at low price is example of external economies of scale.