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Explain four external economies of scale that an industry may experience.

      

Explain four external economies of scale that an industry may experience.

  

Answers


Kavungya
(i) Accessibility of relevant pool of labour
(ii) Improved infrastructure
(iii) Availability of auxiliary services
(iv) Co-operation amongst firms which results to consultation and sharing of ideas
(v) Easy access to market – some firms would find it easier to dispose their output to the neighbouring
firms which would use them as their inputs
(vi) Economies of joint operation – firms may find it convenient to do certain tasks together to
minimize the overall cost .
Kavungya answered the question on April 1, 2019 at 09:02


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