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Tuesday, 16 June 2026
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External economies of scale arise because of:

External economies of scale arise because of:
Take Free Practice Test On 2026 JAMB UTME, Post UTME, WAEC SSCE, GCE, NECO SSCE
  • A Growth of entire industry
  • B Reduction in market size
  • C Government revenue shortage
  • D Decline in labour supply
Correct Answer: Option A
Explanation:
External economies occur when firms benefit from industry-wide improvements such as better roads, skilled labour availability, and improved infrastructure.

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