External economies of scale often arise because similar firms
A)locate in the same geographic region.
B)have excellent internal logistics.
C)agree to cooperate to expand global trade.
D)collude to fix prices and increase profits.
E)have economies of scale in production.

Question

Quizplus · Accepted Answer

External economies of scale occur when firms benefit from factors outside their control, such as being located in a region with a concentration of similar firms, which can lead to shared resources, skilled labor, and knowledge spillovers.

External Economies of Scale Often Arise Because Similar Firms