TireCo is a tire-making company headquartered in France,with operations in several European countries. As a result of these countries' membership in the EU,the company has benefited from lower production costs due to greater access to highly skilled labor at a lower cost to the company. This can best be described as:

Question

Quizplus · Accepted Answer

External economies of scale refer to cost savings that result from factors outside the company, such as access to skilled labor, technology, or infrastructure. In this case, TireCo is benefiting from lower production costs due to external factors related to the EU's policies and regulations.

TireCo Is a Tire-Making Company Headquartered in France,with Operations in Several