Question on: JAMB Economics - 2002

The benefits that accrue to a firm as a result of an improvement in the industry it belongs to are called?

A
internal economies of scale
B
economies of scale
C
market economies
D
external economies
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Correct Option: D

The benefits that a firm receives from improvements in the industry it's a part of are called external economies of scale. This is because these economies originate from outside the firm.

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