For each of the following examples, explain whether this is a case of external or internal economies of scale:
(a) All airframes for Airbus, Europe’s, only producer of large aircraft, are assembled in Toulouse, France.
(b) Most high-tech companies in Germany are based in Ostwestfalen-Lippe
(c) ALDI is able to sell groceries at a lower cost by not providing carrying bags
(d) A person whose FICO score is in good standing gets a lower rate of interest on mortgages
External economies of scale exists when Industry expansion leads to a decrease in average cost whereas internal economies of scale exist when firms expansion leads to a decrease in average cost.
A. Internal economies of scale
b. External economies of scale
c.External economies of scale
d, internal economies of scale
For each of the following examples, explain whether this is a case of external or internal...