What Is the Distinction Between External and Internal Economies and Diseconomies

question 47

Essay

What is the distinction between external and internal economies and diseconomies of scale in an industry?

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Definitions:

Duty To Disclose

A legal obligation to reveal pertinent information in transactions or agreements.

Utmost Good Faith

A legal doctrine requiring parties to act with honesty and not mislead or withhold critical information from one another.

Verbal Agreement

A verbal agreement is an oral contract or understanding between parties, which can be enforceable depending on the context and the nature of the agreement.

Written Contract

A written contract is an agreement between parties that is recorded in a document form, providing clear terms and conditions that are legally enforceable.