External Economies of Scale
External Economies of Scale. There are two types of economies of scale. New Big Pharma Economies Of Scale Less Patients Needed To Reach Blockbuster Sales See Http Pharmamkting Blogspot Com 2 Big Pharma Economies Of Scale Pharma Economies of scale vs diseconomies of scale. . Internal and external economies of scale. So when the industry grows the average costs of business drop. These factors may be positive or negative industry or economic trends. Definition of Economies of Scope. Internal Economies of Scale. Increasing returns to scale can be. There are two types of economies of scale. Moreover the simplest case of an external economy arises when the scale of production function of a firm contains as an implicit variable the output of the industry. External Economies of Scale Cost savings gained due to external factors such as industry-specific trends or macro events. One real-life example
