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External Economies of Scale

External Economies of Scale
Def
forces outside the firm which decrease AC as size of industry increases
types
Specialisation
specialized firms sell goods to firms
plugs
tyres
windows
service
insurance
more companies to share financial risks
Education & training
educate workers
provided by
government
private sector
R&D
firms don't need to do their own R&D
Infastructure
if firm helps economy
government lower
communications
delivery
waste disposal
5
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External economies of scale are business-enhancing factors that occur outside a company but within the same industry.
Tags: mind map business
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