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:

Product E76I

A specific product, possibly identified by a unique identifier "E76I," without further contextual information to define it.

Milling Department

A division or area in a manufacturing facility where milling processes are carried out to shape materials into finished products or components.

Manufacturing Overhead

All indirect costs associated with manufacturing, including indirect labor, materials, and utilities, not directly tied to the production of goods.

Job-Order Costing System

A cost accounting method that captures the financial performance of individual jobs or projects, tracking direct labor, direct materials, and applied overhead per task.