Q. Development of Skilled Labour - External Economies?

As the industry grows training facilities for labour will increase. This helps development of skilled labour that would increase the productivity of workers in the firms.

Growth of Subsidiary and Ancillary Industries: Expansion of an industry can facilitate the growth of subsidiary and ancillary industries to produceequipments, tools and machines etc. and to provide them to main industry at the lower prices. Similarly firms can also come up to transform the waste of the industry into some useful products. This tends to decrease the cost of production.