Internal economies accrue when _________.

an industry develops

No worries! We‘ve got your back. Try BYJU‘S free classes today!

an economy grows

No worries! We‘ve got your back. Try BYJU‘S free classes today!

foreign Trade Develops

No worries! We‘ve got your back. Try BYJU‘S free classes today!

a firm expands

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses

Open in App

Solution

The correct option is C a firm expands
As the firm expands operations, it gains from cost advantages (average cost begins falling due to the scale of activities). These are called economies of scale. Internal economies of scale include, managerial economies, purchasing economies, transport economies etc.

Suggest Corrections

Similar questions

How does international trade contributes to the economic growth and development of economy especially of underdevelopment and developing nations?

Join BYJU'S Learning Program