Q163
Which of the following is example of external economies of scale?
A.
Discount on purchases of raw materials
B.
Technical progress leads to development of machine at low price
AnswerC.
Hiring of specialized staff due to increase in scale of production
D.
A firm starts producing by-products
Answer: Option B
Solution
Answer: Option B
Solution:
Technical progress leads to development of machine at low price is example of external economies of scale.