how do you achieve external economies of scale 
external economies of scale can be achieved a number of different ways technological advancements may drive down production costs for an entire industry as can government support in the form of infrastructure investments or tax subsidies the bottom lineexternal economies of scale refer to the phenomenon in which production costs fall for all firms in a certain sector this is different from economies of scale as the idea is commonly understood in which production costs decline for a single company external economies of scale can encourage widespread and egalitarian economic growth but they can also be geographically limited and dull competition among firms 