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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.

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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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