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How can a firm benefit from external economies?

How can a firm benefit from external economies?
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • 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: Option C
Explanation:
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 is located

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