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Tabitha McClendon
on Nov 04, 2024

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When long-run average costs decrease as a result of industry growth, there are

A) internal economies.
B) internal diseconomies.
C) external economies.
D) external diseconomies.

Internal Economies

Cost-saving measures that arise from the expansion of a firm, affecting the production process internally.

External Economies

Benefits that a firm obtains due to the actions of others or external factors, leading to reduced costs.

  • Interpret the impact of external and internal economies and diseconomies of scale on long-run average costs.
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Jennifer TomaleNov 06, 2024
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