Exercise 3
For each of the following examples, explain whether it is
a case of external or internal economies of scale:
a) Most musical wind instruments in the United States
are produced by more than a dozen factories in
Elkhart, Indiana.
b) All Hondas sold in the United States are either
imported or produced in Marysville, Ohio.
c) All airframes for Airbus, Europe’s only producer of
large aircraft, are assembled in Toulouse, France.
For each of the following examples, explain whether it is
a case of external or internal economies of scale:
a) Most musical wind instruments in the United States
are produced by more than a dozen factories in
Elkhart, Indiana.
b) All Hondas sold in the United States are either
imported or produced in Marysville, Ohio.
c) All airframes for Airbus, Europe’s only producer of
large aircraft, are assembled in Toulouse, France.
