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3.3.3 External Economies of Scale (Edexcel A-Level Economics Teaching PowerPoint)

Level:
A-Level
Board:
Edexcel

Last updated 1 Sept 2023

This editable, downloaded powerpoint covers external economies of scale

External economies of scale occur when the cost advantages of producing a good or service extend beyond an individual firm and benefit multiple firms within a specific industry or geographical area.

External economies of scale provide cost advantages to all firms within an industry or sector, not just to a single firm.

Often, external economies of scale are observed in clusters where businesses in the same industry are in proximity

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