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External economies arises essentially from_________

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External economies arises essentially from_________

A.

A firm's individual policies

B.

Localisation of industry

C.

Government economic policy

D.

Free transferability of shares

Correct answer is B

External economies are the benefits a firm derives from concentration or localisation of industries in a particular area or the benefits a firm enjoys from increase in its output and decrease in cost as a result of the kind of assistance it derives from other firms.