name two external economies of scale?

1. Input Cost Reductions: An external economy of scale occurs when firms are able to access inputs at a lower cost due to increased competition when more firms enter the market. This can result in lower overall production costs and improved profits. 2. Technological Improvements: Technological improvements from an outside source may also create an external economy of scale. This could be customers enjoying a new innovation or productivity improvements made possible due to a technological upgrade. These advancements can help driving down costs and improve the efficiency and productivity of a company.