External economies of scale:
Whenever many firms expand in a particular region that is, whenever the industry grows – they enjoy a number of benefits that are termed as external economies of scale. This is not the benefit enjoyed by a single firm however by all firms in the industry due to the structural growth. They are:
a) Increased transport facilities
b) Banking facilities
c) Development of townships
d) Information and communication developmentAll such facilities are obtainable to all firms in an industrial area.
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