Factors beyond the control of an individual firm that lower the firm's costs as the market output increases are called

Question

Quizplus · Accepted Answer

External economies refer to reductions in a firm's costs that result from an increase in the size of an industry or the market, not from actions taken by the firm itself. These are benefits that all firms in the industry can enjoy without directly contributing to their creation.

Factors Beyond the Control of an Individual Firm That Lower