As Industry Output Increases,suppose That New Knowledge About Production Technology

question 65

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.This would be an example of

• A) internal economy of scale
• B) external economy of scale
• C) internal diseconomy of scale
• D) external diseconomy of scale

---

Definitions:

Psychosocially Informed

An approach that considers both psychological and social factors in understanding or addressing issues.

Traditional Classification

A method of organizing or categorizing based on long-established customs, practices, or criteria.

Organic

Refers to substances, practices, or systems that are based on living processes, especially in agriculture, or compounds containing carbon.

Functional

Serving a purpose, or capable of performing or operating according to a specific function or purpose.