Which of the following is example of external economies of scale?

A Discount on purchases of raw materials
B Technical progress leads to development of machine at low price
C Hiring of specialized staff due to increase in scale of production
D A firm starts producing by-products

Correct Answer: Technical progress leads to development of machine at low price

Technical progress leads to development of machine at low price is example of external economies of scale.
Bissoy MCQ
#Commerce #Economics

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