Question

Which of the following is an example of an internal economy?

Options

• Improved transport facilities are shared by all firms in an industry

• Bulk purchase discounts received by a single firm

• Waste products used by different firms in the industry

• Sharing of market information among different firms

Answer 1

Bulk purchase discounts received by a single firm

Explanation:

Internal economies occur within a firm, such as monetary savings from bulk buying.