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How can a firm benefit from external economies?

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How can a firm benefit from external economies?

A.

Increasing its expenditure on advertising

B.

Increasing the workforce

C.

Locating in an area in which the industry is already established

D.

Merging with another domestic firm engaged in the same industry

Correct answer is C

External economies is the benefit which a firm derives from the centration of similar firms which leads to an increase in output and a reduction in the unit cost

The firm will benefit from the area where the industry islocated.d