How can a firm benefit from external economies?
- Increasing its expenditure on advertising
- Increasing the workforce
-
Locating in an area in which the industry is already established
- Merging with another domestic firm engaged in the same industry
The correct answer is: 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 costThe firm will benefit from the area where the industry is located