Question

What do you mean by internal and external income of an area(on an year basis)?

Answer 1

Internal economies of scale tend to offer greater competitive advantages than external economies of scale. This is because an external economy of scale tends to be shared among competitor firms. The invention of the automobile or the internet helped producers of all kinds. If borrowing costs decline across the entire economy because the government is engaged in expansionary monetary policy, the lower rates can be captured by multiple firms. This does not mean any external economy of scale is a wash. Companies can still take relatively greater or lesser advantage of external economies of scale. Nevertheless, internal economies of scale embody a greater degree of exclusivity.

Hope u like the ans.. Plse Mark me as brainlist