Question

explain the law of internal economies​

Answer 1

Answer:

1)Economies of scale are the unit cost advantages from expanding the scale of production in the long run.

2)These lower costs represent an improvement in long run productive efficiency and can give a business a significant competitive advantage in a market.

3)They also lead to lower prices and higher profits

4)If long run average total cost curve (LRAC) is declining, then internal economies of scale are being exploited