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What are the differences between internal and external economies of scale?
Navneetsinha
Economies of scal occurs when there is an increase in output as cost decreases. This means, as a company will have a better chance to decrease its costs. There are two ways of achieving this, internal and external economies of scale. Internal economies of scale occurs due to the change in size of an individual firm and are not dependant on the industry as a whole. This can be achieved in two ways. 1) Firm level 2) Plant level.
External economies of scale occurs due to a growth in the industry as a whole. The individual firms need not grow, however the entire industry around them does.
Wiki User
∙ 14y ago
Wiki User
∙ 9y agoThe benefits and costs that are associated with the overall expansion of the entire industry are called as external economies. The expansion of a single firm is the internal economies of scale.
Wiki User
∙ 11y agoInternal economies of scale occurs due to the change in size of an individual firm and are not dependant on the industry as a whole. This can be achieved in two ways.
) Firm level 2) Plant level.
External economies of scale occurs due to a growth in the industry as a whole. The individual firms need not grow, however the entire industry around them does.
Wiki User
∙ 13y agoInternal economies of scale relate to the lower unit costs a single firm can obtain by growing in size itself.External economies of scale occur when a firm benefits from lower unit costs as a result of the whole industry growing in size.
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What is internal economy of scale?
The difference between internal economy of scale and external economy of scale is that internal economies of scale come from within the business ; external economies come from or affect the world outside the business.
What is the Differences between internal and external cost?
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What is internal economy of scale?
The difference between internal economy of scale and external economy of scale is that internal economies of scale come from within the business ; external economies come from or affect the world outside the business.
What are the differences between internal data and external data?
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What is the Differences between internal and external cost?
Internal costs are costs that a business bases its price on. External costs are costs that are not included in what the business bases its price on Nicodem
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What are the differences between internal and external environment?
The differences between internal and external environment is: Internal environment involve within the organization, which are the employee attitudes,new equipment,strategy,work forces. The organization has the control of these matters because it happen within the organization unless like external environment. AND for the external environment,is clearly stated with the word external itself which means outside of the organizations which effect the changes in the organization which the organization does not have the control of it. External environment are involved by the PESTLE- Politic, Economy, Social, Technology, Legal and Environment.
