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Internal economies of scale occur when a firm experiences:
  • a)
    Increasing returns to scale
  • b)
    Decreasing returns to scale
  • c)
    Constant returns to scale
  • d)
    No changes in scale of production
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
Internal economies of scale occur when a firm experiences:a)Increasing...
Internal economies of scale occur when a firm experiences increasing returns to scale. This means that as the firm increases its scale of production by expanding its operations, it benefits from cost reductions and efficiency gains.
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Internal economies of scale occur when a firm experiences:a)Increasing returns to scaleb)Decreasing returns to scalec)Constant returns to scaled)No changes in scale of productionCorrect answer is option 'A'. Can you explain this answer?
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