As Industry Output Increases, Suppose That New Knowledge About Production

question 125

Multiple Choice

As industry output increases, suppose that new knowledge about production technology spreads among firms in the area through direct contacts among firms or as workers transfer from firm to firm.Which concept does this example demonstrate?

• A) internal economies of scale
• B) external economies of scale
• C) the home market effect
• D) specialization in production

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Definitions:

Copyrighted Material

Original work that is legally protected against unauthorized copying or distribution, encompassing literature, music, and other creative content.

Potential Market

The segment of the population that is deemed likely to buy a product or service based on certain criteria or attributes.

Liability Law

A legal sector dealing with laws that determine responsibility and obligations among parties in civil legal matters.

Technical Communication

The practice of conveying complex information in a clear and accessible manner to a specific audience, often related to technical or specialized fields.