What term 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 (agglomeration economies)
C)Autarkial dominance
D)Streamlining

Question

Quizplus · Accepted Answer

External economies (also known as agglomeration economies) refer to cost reductions that result from an increase in the size of an industry in a particular geographic area. These cost savings come from factors such as shared infrastructure, greater availability of specialized suppliers, and a larger pool of skilled labor. Internal economies, on the other hand, result from a firm's own actions, such as economies of scale achieved through increased production. Autarkial dominance and streamlining are not relevant to this concept.

What Term Refers to Reductions in a Firm's Costs That