Refers to the cost advantages that multiple firms in the same industry or region grows.
What are the cost savings of external economies of scale typically as a result of?
These cost savings are typically a result of factors beyond the control of any single firm, such as the availability of a skilled labour force, specialised suppliers, infrastructure development, or a supportive business environment.
Who do external economies of scale benefit?
External economies of scale benefit all firms in a particular industry to location, and individual firms do not have direct control over them.
