Once an Industry Becomes Established in a Certain Area Firms

question 110

Multiple Choice

Once an industry becomes established in a certain area firms that locate in that area gain advantages over firms located elsewhere,leading to lower costs of production.Economists refer to the lower costs that result from increases in the size of an industry in a certain area as

• A)external economies.
• B)positive externalities.
• C)strategic advantages.
• D)technological change.

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Definitions:

Chart of Accounts

An organized list of all accounts in a business entity's financial records, each account accompanied by a reference number.

Account Numbers

Unique identifiers assigned to individual accounts within a company's accounting system, facilitating organization and tracking of financial transactions.

Ledger

A book or other collection of financial accounts of a particular type, often the final record where data from journals is compiled.

Journal

A book or electronic record where all financial transactions of a business are initially recorded, often before posting to ledgers.