External economies can be derived through
A) economies of scale.
B) sharing of information between firms in the same industry.
C) the use of infrastructure in the form of fixed social capital.
D) existing labour markets.
E) all of the above

Question

Quizplus · Accepted Answer

All of the above choices can lead to external economies. Economies of scale may lead to cost reductions for firms in the industry, which can create positive externalities. Sharing information between firms can lead to a better understanding of best practices and innovation, benefiting the industry as a whole. The use of infrastructure in the form of fixed social capital, such as roads, can create positive externalities for businesses located in the area, making it easier for them to transport goods and access markets. Existing labour markets can also create external economies by providing a pool of skilled workers and reducing the cost of recruitment and training for businesses.

External Economies Can Be Derived Through