Cost advantages that a firm gets because it is part of a large industry are called:
A) economies of scope
B) economies of scale
C) external economies
D) infrastructure economies

Question

Quizplus · Accepted Answer

External economies refer to the cost advantages that a firm experiences due to its location within a large industry, benefiting from factors like a skilled labor pool, suppliers, and technological advancements.

Cost Advantages That a Firm Gets Because It Is Part