External Economies of Scale Occur When Costs Go Down as an Industry

question 52

True/False

External economies of scale occur when costs go down as an industry expands.

---

Definitions:

Industrial Fiber

Engineered fibers designed for use in manufacturing and industrial applications, often characterized by enhanced strength or durability.

Grinding Machines

Machinery designed for the purpose of grinding materials to finer textures and shapes.

Profitable Use

The application or allocation of resources in a manner that maximizes the financial returns or benefits.

Variable Cost

Expenses that fluctuate in direct proportion to the amount of production, including raw materials and direct labor costs.