Economies of scale result as a firm increases in size and expands its use of resources.Productivity increases and fixed production costs are spread over an increased number of goods and services.Which of the following are types of economies of scale?

Question

Quizplus · Accepted Answer

External economies of scale are those that result from factors outside of the firm's control, such as industry-wide improvements in technology or infrastructure. Command economies, open economies, and closed economies do not directly relate to economies of scale.

Economies of Scale Result as a Firm Increases in Size