External economy refers to the reduction in production costs caused by various factors outside the company; external diseconomy refers to the increase in production costs due to various factors outside the company. These influencing factors include the company's distance from the raw material supply site and product sales market The distance, the size of the market capacity, the convenience of transportation and communication, the development level of other related enterprises, etc.
external economy, as defined above?
Because the government provides cheap raw materials and provides tax relief, the price of the product produced by the enterprise is lower than that of other enterprises in the same industry