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Internal economies

a

arise when there is expansion in an industry.

b

arise in an economy as it makes progress.

c

accrue to a firm when it expands its output.

d

arise when there is expansion in internal trade.

Answer : Option A
Explanation :

Internal economies are those economies in production—those reductions in production costs—which accrue to the firm itself when it expands its output or enlarges its scale of production. The internal economies arise within a firm as a result of its own expansion independent of the size and expansion of the industry as a whole.

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