External economies of scale
What External economies of scale means in Economics A-Level, as defined for AQA.
Definitions of External economies of scale
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Reference: AQA
Falling long-run average costs resulting from the expansion of the industry as a whole, benefiting all firms within it regardless of their individual size.
Occur when the entire industry grows, benefiting all firms within it regardless of their individual size, causing a downward shift of the entire curve.
Topics that use External economies of scale
- Economies and diseconomies of scale (AQA A-Level)
Related terms
- Alienation
- Diseconomies of scale
- Economies of scale
- Empirical evidence
- Internal economies of scale
- Long-run average cost (LRAC) curve
- Market structure
- Minimum efficient scale
Using External economies of scale in the exam
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