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Following are the economies of scale : 1. Technical economies 2. Labour economies 3. Economies of…

Internal economies of scale accrue to an individual firm as a result of expanding its own scale of output, independently of the size of the industry as a whole; these…

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Following are the economies of scale :
1. Technical economies
2. Labour economies
3. Economies of Concentration
4. Managerial economies.
Which of these are internal economies ?

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Answer and explanation

Correct answer D

Internal economies of scale accrue to an individual firm as a result of expanding its own scale of output, independently of the size of the industry as a whole; these include technical economies (1), labour economies (2), and managerial economies (4). By contrast, economies of concentration (3) arise from the localization of many firms of an industry in a single geographic area and are therefore external economies of scale. Thus, 1, 2 & 4 are internal economies.

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