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QUESTION
For each of the following examples, explain whether it is a case of external or internal economies of scale:
For each of the following examples, explain whether it is a case of external or internal economies of scale:
a. A large number of firms doing contract research for the drug industry are concentrated in southeastern South Carolina.
b. All airframes for their airplanes are assembled by Airbus, Europe's only producer of large aircraft, in Toulouse, France.
