________ refers to reductions in a firm's costs that result from an increase in the size of an industry.
A)Internal economies
B)External economies
C)Autarkic dominance
D)Streamlining

Question

Quizplus · Accepted Answer

External economies refer to reductions in costs that result from an increase in the size of an industry. These cost reductions can come from shared infrastructure, a larger labor pool, or lower input costs due to increased bargaining power with suppliers. Internal economies, on the other hand, refer to cost reductions that come from efficiency gains within a firm, such as economies of scale or scope. Autarkic dominance is not a term commonly used in economics, while streamlining refers to a company's efforts to improve efficiency by eliminating non-essential processes or reducing workforce size, and is not directly related to economies of scale or industry size.

________ Refers to Reductions in a Firm's Costs That Result